Trade Idea (2020-11-23) EURUSD failed to try 1.19 three times

Trade Idea

Good morning.

The US stock market fell back last Friday. At the beginning of the week, it hit a record high of close to 30,000, but adjustments continued thereafter. Pfizer has applied for an emergency license (EUA) from the FDA, and although the vaccine development has been well received, it will take time to spread, so markets are concerned about the current economic caution as the spread of infection is confirmed in each country. Is suitable.

In the foreign exchange market, the depreciation of USD has subsided, and USDJPY has been moving up and down within a narrow range in the upper 103 range. EURUSD has been sluggish in the mid 1.18 range, with return sales predominant. Although the FRB’s low interest rate policy is expected to prolong the period, USD’s depreciation is basically strong and the EURUSD is showing steady development, but the try to the 1.19 level failed three times in the week. Upside is getting heavier. With the spread of the infection in Europe and the ECB meeting (December 10th)  confirming additional easing, the wait-and-see mood is getting stronger.

EURUSD H1 (Please click the chart to enlarge.)

Market Environment

Yesterday’s currency strength

US market yesterday (last Friday)

DJIA: 29,263.48 (-219.75, -0.75%)
NASDAQ: 11,854.97 (-49.74, -0.42%)
S&P 500: 3,557.54 (-24.33, -0.68%)
GOLD: 1,869.6 (+8.1)
OIL: 42.47 (+0.57)
US 10-YR: 0.824 (-0.031)
VIX: 23.7 (+0.59)

Asian market today

Nikkei: holiday
CME Dow future: 29,256~(-7 Dow)

Economic indicators in this week

08:15:FR) PMI (Mfg, Service)
08:30:GE) PMI (Mfg, Service)
09:00:EU) PMI (Mfg, Service)
09:30:UK) PMI (Mfg, Service)
14:45:US) PMI (Mfg)