Trade Idea (2020-10-21) EURUSD recovered 1.18

Trade Idea

Good morning.

Yesterday’s US stocks rebounded, although all three indices declined in the latter half of the market. The forex market has become a risk-on USD selling dominance in the US market, with EURUSD rising to 1.184 and ending the US market with 1.182. GBPUSD was in the 1.292-1.298 range.

EURUSD has moved above the 20 Daily-MA, and the chart shape has improved. On the other hand, I am worried about re-expansion of infection of COVID-19 and the recession in Europe. PMI of Euro zone will be announced on Friday.

EURUSD H1 (Please click the chart to enlarge.)

GBPUSD H1 (Please click the chart to enlarge.)

Market Environment

Yesterday’s currency strength

US market yesterday

DJIA: 28,308.79 (+113.37, +0.4%)
NASDAQ: 11,516.49 (+37.51, +0.33%)
S&P 500: 3,443.12 (+16.2, +0.47%)
GOLD: 1,917.8 (+2.4)
OIL: 41.46 (UNCH)
US 10-YR: 0.804 (+0.007)
VIX: 29.35 (+0.17)

Asian market today

Nikkei: 23,643~ (+76)
CME Dow future: 28,282~( -26 Dow)

Economic indicators today

GMT 06:30 (UK) CPI, PPI