Trade Idea (2020-10-26) EURUSD ended 1.186

Trade Idea

Good morning.

US stocks last Friday was in a slight decline in DJIA, while S&P500 and Nasdaq rose modestly, continuing to wait for the US presidential election. It seems that the TV debate in the US presidential election did not effect market.

Forex market last Friday continued to sell USD following the week, with EURUSD being bought in the London market in favor of a strong PMI and rising to 1.186, also closed at 1.186. It is still above the 20 Daily-MA, and uptrend toward 1.20 is maintained. On the other hand, the spread of the second wave of infection of COVID-19 is worsening in Europe and US. The ECB meeting is scheduled for this week.

GBP was sold in last Friday. Trade negotiations between the UK and the EU have resumed, and it was reported that “France is ready to compromise on fishing rights.” Although progress has been made on fishing rights, which have been said to be inevitable since the early days of Brexit, buying GBP was surprisingly temporary. However, it is still moving above 20 Daily-MA, and the chart has not collapsed yet.

In this week, London and European markets are already in winter time, while the New York market is still in daylight savings time.

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: 28,335.57 (-28.09, -0.1%)
NASDAQ: 11,548.28 (+42.28, +0.37%)
S&P 500: 3,465.39 (+11.9, +0.34%)
GOLD: 1,903.4 (-1.2)
OIL: 39.78 (-0.86)
US 10-YR: 0.841 (-0.007)
EUR/USD 1.186 (+0.004)
VIX: 27.55 (-0.56)

Asian market today

Nikkei: 23,518~ (+1)
CME Dow future: 28,100~(-235 Dow)

Economic indicators today

GMT 09:00 (Germany) IFO index
GMT 14:00 (US) New housing sales