EURUSD plunges, stocks fall as Italy imposes 40% excess profit tax on banks【August 9, 2023】
Fundamental Analysis
Italian Government Announces 40% Excess Profit Tax on Banks, Impact on European Stocks
Moody’s downgrades 10 U.S. banks, sending U.S. stocks sharply lower
China’s economic indicators fall short of expectations, AUD temporarily below the milestone of USD 0.65
EURUSD Technical Analysis
Analysis of the EURUSD on a daily basis confirms the awareness of the uptrend line. Although the trend line was temporarily broken due to yesterday’s big drop, the trend line was maintained due to short covering by profit taking. Going forward, the focus will be on whether the uptrend line can be maintained.
If the trend line is broken, a decline to around USD 1.085 is expected.
Day Trading Strategy (Hourly)
Checking the hourly EURUSD chart, the candlestick is now sandwiched between the daily uptrend line and the downtrend line. The fluctuation is gradually decreasing, and there is a strong possibility of a breakout in either direction in the future. It is impossible to predict which direction the breakout will be in at this stage.
As for our trading policy, we understand from the sentiment that a certain number of buy positions have accumulated, so we would like to follow the market with sell positions in the event of a breakout to the downside. However, we intend to trade in the short term.
Support and Resistance Lines
The resistance line to be considered in the future is as follows
1.0963 USD – Pivot Point
Market Sentiment
EURUSD Sell: 42% Buy: 58%
Today’s Important Economic Indicators
Economic Indicators and EventsJST (Japan Standard Time)Crude Oil Inventories23:30
*Trading advice in this article is not provided by Milton Markets, but by Shu Fujiyasu Jr., a certified technical analyst.
Risk Disclaimer
This analysis is for educational purposes only and does not constitute investment advice. Trading forex and CFDs involves significant risk and may not be suitable for all investors. Past performance is not indicative of future results.
This analysis is for educational purposes only and does not constitute investment advice. Trading forex and CFDs involves significant risk and may not be suitable for all investors. Past performance is not indicative of future results.
