Market Research

BCH quotes failed to consolidate above 437.50 (Murrey [7/8]), although over the past two weeks they have made such attempts several times. Currently, the price stepped back to the level of 375.00 (Murrey [6/8]). The correction to the levels of 312.50 (Murrey [5/8]) and 250.00 (Murrey [4/8]) will be possible after the consolidation below the middle line of Bollinger bands around 350.00. The key “bullish” level is 437.50 (Murrey [7/8]). Fixing above it will give the prospect of growth to the upper border of the Murrey trading range around 500.00 (Murrey [8/8]) and to the level of 562.50 (Murrey [+1/8]).

GBP remains weak amid the domestic political crisis associated with Brexit.

The index measures business sentiment and business conditions in Germany based on a survey of about 7,000 companies. A higher than expected reading should be taken as positive/bullish for EUR, while a lower than expected reading should be taken as negative/bearish for EUR. The index is expected to remain unchanged at 99.2.

The German Manufacturing Purchasing Managers' Index (PMI) measures the activity level of purchasing managers in the manufacturing sector. A reading above 50 indicates expansion in the sector; below indicates contraction. A higher than expected reading should be taken as positive/bullish for EUR, while a lower than expected reading should be taken as negative/bearish for EUR. The indicator is expected to grow from 44.4 to 44.8 points.

The price may grow.

On the 4-hour chart, the upward correction of the higher level forms as the wave (B) of 2. Now, the wave A of (B) has formed as a momentum, the wave B of (B) has developed, and the formation of the wave C of (B) has begun. If the assumption is correct, the price will grow to the levels of 57.85–60.10. In this scenario, critical stop loss level is 50.65.