EUR/USD – shakeout after Trumps speech – how to trade
Euro Fx/U.S. Dollar FX:EURUSD
After Trump’s speech (in reference to 10 % punitive duties against china) at the beginning of August, the dollar fell into a severe recession and has slowly bottomed out in recent days. Today Trump gave another speech and announced that the punitive tariffs will be postponed (not cancelled, but postponed) and that he wants to start new talks with China in the next weeks. I expect them to fail again. From a fundamental point of view, this pair is currently a clear buy.
-Stochastic RSI already heavy over selled on 1H
-regular RSI near heavy over selled area on 1H
-market price touching currently the 200 day moving average. Expect fast down movement if next candles close under it and fast up movement if the next candles close above the red moving average line
-market price reached down side of Bollinger bands which is support