Trade Idea (2020-10-22) EURUSD reached 1.188

Trade Idea

Good morning.

Yesterday’s US stocks fell slightly in all three indices in the lack of direction. The talks between the ruling and opposition parties on economic measures was reported to be continue.

The forex market was dominated by risk-on USD selling, continuing from the previous day. EURUSD temporarily rose to 1.188 in the US market and continues to rise above 20 Daily-MA. On the other hand, in Europe, the second wave of infection od COVID-19 continues to spread, and expectations for further easing of the ECB are rising due to uncertainties about future economy in Europe. GBPUSD were also bought and temporarily rose to 1.317, up 240 pips from the Tokyo market. It was reported that UK and the EU have resumed trade negotiations, and the negotiations are expected to continue for about three weeks.

EURUSD seems to be trying 1.20 again. I will focus on Friday’s PMIs.

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: 28,210.82 (-97.97, -0.35%)
NASDAQ: 11,484.69 (-31.8, -0.28%)
S&P 500: 3,435.56 (-7.56, -0.22%)
GOLD: 1,923.5 (-6)
OIL: 39.86 (-0.17 )
US 10-YR: 0.809 (-0.007)
VIX: 28.65 (-0.7)

Asian market today

Nikkei: 23,508~ (-130)
CME Dow future: 27,962~(-248 Dow)

Economic indicators today

GMT 12:30 (US) New Jobless Claim