Trade Idea (2020-10-28) 2nd infection in Europe is increasing

Trade Idea

Good morning.

Yesterday’s US stocks were mixed, with DJIA fell and the Nasdaq rose.

In forex market, risk-off USD buying has decreased in quiet mood waiting for the result of US presidential election.

EURUSD was bought early in the New York market, but was sluggish late in the market, ending at 1.179. It was bought when it entered 1.17, and 1.1775 on 20 daily-MA20 was recognized as a downside support, and the upward trend is maintained, but the number of deaths per day in France reached 523. The feeling of risk-off is spreading. (It has fallen to 1.1781 in the Tokyo market where this article is written, and it is trying the 20th line.)

GBPUSD also tried to break below 1.30 in the London market temporally, but it became a buy-back mood in the New York market, and was bought up to 1.3080, ending around 1.304.

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: 27,463.19 (-222.19, -0.8)
NASDAQ: 11,431.35 (+72.41, +0.64)
S&P 500: 3,390.68 (-10.29, -0.3)
GOLD: 1,908.2 (-3.7)
OIL: 38.67 (-0.9)
US 10-YR: 0.768 (-0.01)
VIX: 33.35 (+0.89)

Asian market today

Nikkei: 23,404~ (-81)
CME Dow future: 27,197~(-266 Dow)

Economic indicators today

GMT 14:00 (CA) BOC policy statement