Trade Idea (2020-10-23) EURUSD/GBPUSD supported by Weekly Pivot R1

Trade Idea

Good morning.

Yesterday’s US stocks rebounded in all three indices, and although they fell in the early stages, they turned up in the second half and closed. Although shaken every day by the headline of additional economic measures, basically, adjustment of US stock market is continuing toward the US presidential election.

In forex market, USD selling was stopped yesterday, and it was repurchased from the previous day’s decline. EURUSD fell to 1.181 due to USD repurchase. The day before, it surged to 1.188, showing signs of trying 1.20 again, but on the other hand, the second wave of infection of COVID-19 continues to spread in Europe, inflation expectations recede due to economic uncertainties, and ECB’s further easing expectations is increasing. GBPUSD also stopped rising and fell to 1.307. Trade negotiations between the UK and the EU have resumed, while the second wave of infection is expanding in the UK as well.

Yesterday, both EURUSD and GBPUSD were supported by R1 of the weekly pivot.
Near term of EURUSD depends on selling USD, not buying EUR. IT might try 1.20 again, but I’ll pay attention to today’s PMIs.

There will be a final debate on the US presidential election (US time 23rd 21:00~).

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: 28,363.66 (+152.84, +0.54%)
NASDAQ: 11,506.01 (+21.31, +0.19%)
S&P 500: 3,453.49 (+17.93, +0.52%)
GOLD: 1,904.4 (-0.2)
OIL: 40.61 (-0.03)
US 10-YR: 0.861 (+0.013)
VIX: 28.11 (-0.54)

Asian market today

Nikkei: 23,483~ (+8)
CME Dow future: 28,226~(-137 Dow)

Economic indicators today

GMT 21:45 (NZ) CPI
GMT 06:00 (UK) Retail sales
GMT 07:15 (France) PMI – Mfg and Non-mfg
GMT 09:30 (Germany) PMI – Mfg and Non-mfg
GMT 08:00 (EU) PMI – Mfg and Non-mfg
GMT 08:30 (UK) PMI – Mfg and Non-mfg
GMT 13:45 (US) PMI – Mfg and Non-mfg

Debate of US presidential candidates (final debate, US time 23rd 21:00~)