[09/10]Capstone review: European economy is boosted, euro rose for the first time this month, tonight focus on the decision of Bank of Europe interest rate!


2020-09-10 12:56      from:Capstone    author:Thomas

Capstone Yesterday's review:

During the golden week, Asian trading fluctuated slightly between 1920 and 1932 US dollars. After the opening of the European market, the European market fell as a whole, with the lowest falling to 1919 US dollars, and then rebounded. During the US market, it rose to the daily high of 1950.71 US dollars, rebounded by more than 30 US dollars, and finally closed up 0.80% to 1946.30 US dollars / ounce. In terms of oil market, WTI crude oil fluctuated slightly around us $36.4 during the Asian session. After the opening of the European market, it rose sharply to US $37.5, and then rose further to US $38.42 after the opening of the US market, and finally closed up 2.84% to US $37.77/barrel. Brent crude rose 2.32% to $40.64/barrel.

In the foreign exchange market, in its policy decision yesterday, the Bank of Canada again promised to keep the benchmark interest rate at 0.25% until inflation is sustained. The bank also reiterated that its QE programme would continue until the economy recovered from the outbreak. On Wednesday, the UK announced the internal market act, recognizing that some of its rights may be inconsistent with international law and that some of its provisions are still in force even though they are inconsistent or incompatible with international or other domestic laws. Ministers can provide financial assistance to anyone concerned with economic development, infrastructure or cultural and sports activities. EU sources said the EU would not suspend brexit talks because of the UK's new internal market bill.

Today's analysis:

(H1 chart of Europe and America)

Europe and the United States:

The dollar index fell to 93.25, the first day of the month. Earlier, the index rose to a four week high of 93.66. The dollar index fell from a four week high and the euro rose for the first time since the month, as some European Central Bank policy makers became more confident about the region's economic recovery. In addition, the United States also announced the initial application and PPI monthly rate data in August, which will have a greater impact on the disk. During the day, the upper pressure level was 1.1824 and 1.1849, and the lower support level was 1.1791 and 1.1754.

EURUSD trading strategy:

Strategy 1: short every high (14 points)

Admission position: 1.1810 stop loss position: 1.1824 stop profit position: 1.1796

Strategy 2: breaking up and doing more (14 points)

Admission position: 1.1824 stop loss position: 1.1810 stop profit position: 1.1838


Gold remained in a narrow range in the morning trading, and is currently trading at US $1945.65/oz. Judging from the recent performance, the overall gold price shows a wide range of fluctuations. Although the gold price has risen and fallen, the overall price is still in the $1900-2000 box. The ability to break the deadlock has not yet emerged. Investors in the range can pay attention to the upper and lower lines of the box, short when high, while bargain hunting can be appropriate to break the box stop loss. During the day, the upper pressure level was 1951 and 1973, and the lower support level was 1940 and 1919. At present, the consolidation of the lower section of the box body was maintained, and the idea of short-term low was mainly maintained.

Today's data:

European Central Bank announces interest rate resolution

Lagarde holds press conference

Us initial jobless claims in the current week (10000)

Us PPI monthly rate in August

Monthly wholesale sales rate in July

Us EIA crude oil inventory in current week (10000 barrels)


This analysis and trading strategy objectively describes the current market trend. Investors need to strictly implement the trend, light positions, stop loss! Can not be fully in accordance with the trading strategy as the basis for placing orders, only for reference!

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