InvestMacro

Article By RoboForex.com

USDCAD, “US Dollar vs Canadian Dollar”

As we can see in the H4 chart, the correction within the descending tendency continues. Right now, after testing the resistance area and forming several reversal patterns, such as Engulfing, USDCAD is expected to reverse and correct towards 1.3060. However, an alternative scenario implies that the price may return to the resistance area at 1.3245 before resuming the downtrend.

AUDUSD, “Australian Dollar vs US Dollar”

As we can see in the H4 chart, AUDUSD continues moving towards the channel’s downside border. Right now, after completing another correction and forming several reversal patterns, such as Harami, the pair is expected to reverse and move downwards. In this case, the downside target may be the support area at 0.7000. At the same time, an opposite scenario says that the price may grow to reach 0.7140 before resuming its decline.

USDCHF, “US Dollar vs Swiss Franc”

As we can see in the H4 chart, after breaking the rising channel’s downside border and forming several reversal patterns, such as Inverted Hammer, close to the horizontal support level, USDCHF is reversing and correcting. In this case, the upside target may be the resistance area at 0.9170. Still, there might be an alternative scenario, according to which the asset may continue falling and return to the support level at 0.9060 without reversing and correcting.

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

by JustForex

The EUR/USD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.17170
• Open: 1.17652
• % chg. over the last day: +0.43
• Day’s range: 1.17599 – 1.17805
• 52 wk range: 1.0637 – 1.2012

The bullish sentiment prevails on the EUR/USD currency pair. During yesterday’s trading session, the growth of quotes exceeded 50 points. The trading instrument has updated local highs. Greenback demand has weakened as the deadline for agreeing on a new stimulus package is getting closer and the deal is still pending. At the moment, the local support and resistance levels are 1.1760 and 1.1790, respectively. Further growth of EUR/USD quotes is possible. Positions should be opened from key levels.

The news feed on 2020.10.20:

At 15:30 (GMT+3:00), statistics on the US real estate market will be published.

Indicators signal the power of buyers: the price has fixed above 50 MA and 100 MA.

The MACD histogram is in the positive zone, but below the signal line, which gives a weak signal to buy EUR/USD.

Stochastic Oscillator is in the neutral zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations

• Support levels: 1.1760, 1.1740, 1.1725
• Resistance levels: 1.1790, 1.1815, 1.1830

If the price fixes above 1.1790, further growth of EUR/USD quotes is expected. The movement is tending to 1.1815-1.1830.

An alternative could be a decline in the EUR/USD currency pair to 1.1730-1.1710.

The GBP/USD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.28935
• Open: 1.29375
• % chg. over the last day: +0.16
• Day’s range: 1.29192 – 1.29580
• 52 wk range: 1.1409 – 1.3516

The GBP/USD currency pair is still in a sideways trend. The technical pattern is ambiguous. At the moment, the British pound is testing local support and resistance levels: 1.2920 and 1.2960, respectively. Financial market participants expect up-to-date information on the Brexit issue. Today, we recommend paying attention to the news feed on the US economy. Positions should be opened from key levels.

The publication of important UK economic releases is not planned.

Indicators do not give accurate signals: the price has crossed the 50 MA and 100 MA.

The MACD histogram is near the 0 mark. There are no signals at the moment.

Stochastic Oscillator is in the neutral zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations

• Support levels: 1.2920, 1.2875, 1.2850
• Resistance levels: 1.2960, 1.3005, 1.3045

If the price fixes above 1.2960, the GBP/USD currency pair is expected to grow. The movement is tending to 1.3000-1.3020.

An alternative could be a drop in GBP/USD quotes to 1.2880-1.2850.

The USD/CAD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.31880
• Open: 1.31920
• % chg. over the last day: +0.08
• Day’s range: 1.31773 – 1.32037
• 52 wk range: 1.2949 – 1.4669

There is an ambiguous technical pattern on the USD/CAD currency pair. The loonie is consolidating. At the moment, the local support and resistance levels are 1.3170 and 1.3205, respectively. The trading instrument has the potential for further growth. We recommend paying attention to the dynamics of “black gold” prices. Positions should be opened from key levels.

The news feed on Canada’s economy is calm.

Indicators do not give accurate signals: the price has crossed the 50 MA and 100 MA.

The MACD histogram is near the 0 mark. There are no signals at the moment.

Stochastic Oscillator is in the neutral zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations

• Support levels: 1.3170, 1.3150, 1.3125
• Resistance levels: 1.3205, 1.3240, 1.3260

If the price fixes above 1.3205, further growth in USD/CAD quotes is expected. The movement is tending to 1.3240-1.3260.

An alternative could be a decrease in the USD/CAD currency pair to 1.3125-1.3100.

The USD/JPY currency pair

• Prev Open: 105.364
• Open: 105.367
• % chg. over the last day: +0.01
• Day’s range: 105.340 – 105.615
• 52 wk range: 101.19 – 112.41

The USD/JPY currency pair continues to consolidate. There is no defined trend. At the moment, the local support and resistance levels are 105.45 and 105.65, respectively. The trading instrument has the potential for recovery. We recommend paying attention to the dynamics of US government bonds yield. Positions should be opened from key levels.

The news feed for Japan’s economy is calm.

Indicators signal the power of buyers: the price has fixed above 50 MA and 100 MA.

The MACD histogram is in the positive zone, which indicates the bullish sentiment.

Stochastic Oscillator is in the neutral zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations

• Support levels: 105.45, 105.20, 105.05
• Resistance levels: 105.65, 105.80, 105.95

If the price fixes above 105.65, further growth in USD/JPY quotes is expected. The movement is tending to 105.90-106.10.

An alternative could be a decline in the USD/JPY currency pair to 105.20-105.00.

by JustForex

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

Article By RoboForex.com

XAUUSD, “Gold vs US Dollar”

As we can see in the H4 chart, XAUUSD is still correcting to the upside after the convergence and has almost reached 38.2% fibo. The next upside targets may be 50.0%, 61.8%, and 76.0% fibo at 1962.00, 1988.40, 2020.30 respectively. If the price completes the pullback there, the asset may start a new decline to reach the low at 1848.67 and then the long-term 38.2% fibo at 1836.50.

In the H1 chart, after the divergence, the descending wave has tested the area close to 61.8% fibo at 1881.00. Judging by the current wave, the asset is not expected to continue falling towards 76.0% fibo at 1869.07. According to the main scenario, the instrument may grow to break the high at 1933.18.

USDCHF, “US Dollar vs Swiss Franc”

As we can see in the H4 chart, after finishing a short-term pullback, USDCHF is forming a new descending wave towards 76.0% fibo at 0.9070. This descending wave may easily break the low at 0.8999 and then reach the post-correctional extension area between 138.2% and 161.8% fibo at 0.8885 and 0.8816 respectively.

In the H1 chart, a divergence on MACD made the pair complete the pullback at 50.0% fibo and start a new movement towards the mid-term 76.0% fibo at 0.9070.

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Article By RoboForex.com

EURUSD, “Euro vs. US Dollar”

As we can see in the H4 chart, EURUSD is moving below the 200-day Moving Average, thus indicating a descending tendency. In this case, the price is expected to continue falling towards 1.1596. However, this scenario may no longer be valid if the price breaks 1/8 to the upside. After that, the instrument may continue growing to reach the resistance at 2/8.

In the M15 chart, the pair may break the downside line of the VoltyChannel indicator and, as a result, continue trading downwards.

GBPUSD, “Great Britain Pound vs US Dollar”

As we can see in the H4 chart, GBPUSD is moving below 3/8. In this case, the price is expected to break 2/8 and then continue trading downwards to reach the support at 0/8. However, this scenario may no longer be valid if the price breaks 2/8 to the upside. After that, the instrument may continue growing to reach the closest resistance at 3/8.

In the M15 chart, the pair may break the downside line of the VoltyChannel indicator and, as a result, continue moving downwards to reach 0/8 from the H4 chart.

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

by JustForex

The EUR/USD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.17076
• Open: 1.17170
• % chg. over the last day: +0.10
• Day’s range: 1.17031 – 1.17250
• 52 wk range: 1.0637 – 1.2012

There is an ambiguous technical pattern on the EUR/USD currency pair. The trading instrument is consolidating. Investors expect additional drivers. At the moment, the following local support and resistance levels can be distinguished: 1.1690 and 1.1725, respectively. Financial market participants also continue to monitor discussions on new economic stimulus in the US before the November 3 presidential election. Financial markets are under pressure due to the coronavirus pandemic. The number of infected in the world has approached the 40 million mark. Positions should be opened from key levels.

The news feed on 2020.10.19:

Today, we recommend paying attention to the speeches by the heads of the ECB and the Fed.

Indicators do not give accurate signals: the price has crossed the 50 MA.

The MACD histogram is near the 0 mark.

Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which indicates the bullish sentiment.

Trading recommendations

• Support levels: 1.1690, 1.1650
• Resistance levels: 1.1725, 1.1745, 1.1765

If the price fixes below 1.1690, EUR/USD quotes are expected to fall further. The movement is tending to 1.1650-1.1630.

An alternative could be the growth of the EUR/USD currency pair to 1.1745-1.1770.

The GBP/USD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.28972
• Open: 1.28935
• % chg. over the last day: -0.02
• Day’s range: 1.28935 – 1.29801
• 52 wk range: 1.1409 – 1.3516

The technical pattern on the GBP/USD currency pair is still ambiguous. The British pound is still being traded in a flat with a quite wide range. At the moment, the local support and resistance levels are 1.2940 and 1.2980, respectively. The deadline for Brexit negotiations was scheduled for October 15, and the deal failed to close. Financial market participants expect new statements by the British Prime Minister regarding the country’s exit from the EU. Positions should be opened from key levels.

The publication of important UK economic releases is not planned.

Indicators do not give accurate signals: the price has crossed the 50 MA and 100 MA.

The MACD histogram has started rising, which indicates the development of bullish sentiment.

Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which gives a signal to buy GBP/USD.

Trading recommendations

• Support levels: 1.2940, 1.2890, 1.2850
• Resistance levels: 1.2980, 1.3005, 1.3045

If the price fixes above 1.2980, the GBP/USD currency pair is expected to grow. The movement is tending to 1.3010-1.3040.

An alternative could be a drop in GBP/USD quotes to 1.2900-1.2870.

The USD/CAD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.32247
• Open: 1.31880
• % chg. over the last day: -0.24
• Day’s range: 1.31682 – 1.31908
• 52 wk range: 1.2949 – 1.4669

The USD/CAD currency pair is consolidating. Local support and resistance levels are 1.3160 and 1.3200, respectively. The technical pattern signals a further correction of the trading instrument after a significant drop since the beginning of the current month. We recommend paying attention to the dynamics of “black gold” prices. Positions should be opened from key levels.

At 15:30 (GMT+3:00), data on wholesale sales in Canada will be published.

Indicators do not give accurate signals: the price has fixed between 50 MA and 100 MA.

The MACD histogram is in the negative zone, but above the signal line, which gives a weak signal to sell USD/CAD.

Stochastic Oscillator is in the neutral zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations

• Support levels: 1.3160, 1.3125, 1.3100
• Resistance levels: 1.3200, 1.3240, 1.3260

If the price fixes above 1.3200, further correction of USD/CAD quotes is expected. The movement is tending to 1.3240-1.3260.

An alternative could be a decrease in the USD/CAD currency pair to 1.3125-1.3100.

The USD/JPY currency pair

• Prev Open: 105.437
• Open: 105.364
• % chg. over the last day: -0.04
• Day’s range: 105.364 – 105.502
• 52 wk range: 101.19 – 112.41

The USD/JPY currency pair is still in a sideways trend. There is no defined trend. USD/JPY quotes continue to test local support and resistance levels: 105.20 and 105.50, respectively. The trading instrument has the potential for growth. We recommend paying attention to the dynamics of US government bonds yield. Positions should be opened from key levels.

During the Asian trading session, weak data on Japan’s trade balance were published.

Indicators do not give accurate signals: 50 MA has crossed 100 MA.

The MACD histogram is in the positive zone, which indicates the bullish sentiment.

Stochastic Oscillator is in the neutral zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations

• Support levels: 105.20, 105.05, 104.70
• Resistance levels: 105.50, 105.65, 105.80

If the price fixes above 105.50, USD/JPY quotes are expected to grow. The movement is tending to 105.70-105.90.

An alternative could be a decline in the USD/JPY currency pair to 105.00-104.80.

by JustForex

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

Author: Dmitriy Gurkovskiy, Chief Analyst at RoboForex

On Monday, October 19th, the major currency pair is moving rather slow not far from 1.1706. Earlier, the American currency got significantly weaker due to the statistics published by the USA last Friday. In addition to that, the key highlight of the year, the presidential elections in the USA, is only two weeks away and it’s going to be very exciting and emotional. In this light, the major currency pair is consolidating.

The statistics from the USA showed that the Retail Sales skyrocketed by 1.9% m/m in September although it was expected to add only 0.7% m/m. The Core Retail Sales also went up and added 1.5% m/m, which is better than expected (+0.4% m/m). Such strong numbers show much better support to the country’s economy from consumers than was expected earlier. Moreover, they indicate that the situation in the employment sector is more stable than it seems.

At the same time, quick growth in the number of new COVID-19 cases in the USA and everywhere around the globe prevents analysts from giving long-term outlooks for different macroeconomic indicators in general and the GDP in particular.

In two weeks, the USA is going to elect the President and that’s what is keeping the USD in suspense.

In the H4 chart, EUR/USD has completed the ascending correctional wave at 1.1740; right now, it is falling to break 1.1684 and may later continue trading downwards to reach 1.1625 and even the short-term target at 1.1584. From the technical point of view, this scenario is confirmed by MACD Oscillator: its signal line is no longer moving inside the histogram area, thus allowing the asset to form the correction. Later, the line is expected to get back inside the area. If it happens, the instrument may boost its decline on the price chart.

As we can see in the H1 chart, after completing the descending impulse towards 1.1712, EUR/USD is consolidating around this level. Possibly, the pair may break the range to the downside and reach 1.1684. After that, the instrument may form another consolidation range and also break it to the downside to continue the downtrend. From the technical point of view, this scenario is confirmed by Stochastic Oscillator: its signal line is moving below 50, thus implying further downtrend.

Disclaimer

Any forecasts contained herein are based on the author’s particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.

Article By RoboForex.com

EURUSD, “Euro vs US Dollar”

After completing the descending wave at 1.1698, EURUSD is consolidating above this level. Possibly, the pair may expand the range up to 1.1717 and then down to 1.1678. If later the price breaks this range to the upside, the market may start a new correction with the target at 1.1760; if to the downside – resume trading downwards to reach 1.1600.

GBPUSD, “Great Britain Pound vs US Dollar”

After finishing the descending structure at 1.2960 and breaking this level to the downside, GBPUSD continues falling to reach 1.2848. After that, the instrument may correct towards 1.2960 and then form a new descending structure with the first target at 1.2830.

USDRUB, “US Dollar vs Russian Ruble”

After completing the ascending correctional structure at 78.28, USDRUB is expected to break this correctional channel to the downside and resume trading downwards with the first target at 76.40.

USDJPY, “US Dollar vs Japanese Yen”

USDJPY is still consolidating above 105.00. Possibly, the pair may correct and expand the range up to 105.55 and then fall to return to 105.00. After that, the instrument may break the later level and continue moving downwards with the short-term target at 104.40.

USDCHF, “US Dollar vs Swiss Franc”

USDCHF is still consolidating around 0.9140. Possibly, today the pair may expand the range up to 0.9170 and then start a new correction to reach 0.9127. Later, the market may form one more ascending structure with the target at 0.9225.

AUDUSD, “Australian Dollar vs US Dollar”

AUDUSD is still falling towards 0.7052. Today, the pair may reach this level and then consolidate around it. If later the price breaks this range to the upside, the market may correct with the target at 0.7140.

BRENT

Brent is still consolidating around 42.60. Possibly, the asset may fall towards 41.50 and then form one more ascending structure to reach 44.22, at least. Later, the market may correct to return to 41.50 and then resume growing with the target at 46.50.

XAUUSD, “Gold vs US Dollar”

After finishing the descending wave at 1890.50, Gold has returned to 1905.50; right now, it is consolidating around the latter level. If later the price breaks this range to the upside, the market may continue the correction with the target at 1919.19 and then resume trading downwards to reach 1880.00.

BTCUSD, “Bitcoin vs US Dollar”

BTCUSD is still consolidating around 11400.00 without any particular direction. According to the main scenario, the price is expected to fall towards 11111.00. Later, the market may correct to test 11400.00 from below and then resume falling with the target at 10900.00.

S&P 500

After finishing the descending wave at 3447.5 and almost eliminating the gap, the S&P index has completed the ascending structure towards 3500.0. Possibly, today the asset may reach 3506.6 and then start a new decline with the target at 3440.0. After that, the instrument may form one more ascending structure to reach 3580.0.

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

by JustForex

The EUR/USD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.17453
• Open: 1.17076
• % chg. over the last day: -0.34
• Day’s range: 1.16941 – 1.17156
• 52 wk range: 1.0637 – 1.2012

The greenback has been growing against its main competitors. The demand for safe assets has grown due to a sharp increase in the number of COVID-19 cases in the US and Europe. Several EU countries have introduced new restrictive measures. Investors also continue to follow the discussion on new economic stimulus in the US. The EUR/USD currency pair has updated local lows. At the moment, the trading instrument is consolidating in the range of 1.1690-1.1720. Further decline in the single currency is possible. We recommend opening positions from key levels.

The news feed on 2020.10.16:

• – Data on inflation in the Eurozone at 12:00 (GMT+3:00);
• – Report on retail sales in the US at 15:30 (GMT+3:00).

Indicators signal the power of sellers: the price has fixed below 50 MA and 100 MA.

The MACD histogram is in the negative zone, but above the signal line, which gives a weak signal to sell EUR/USD.

Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which indicates the bullish sentiment.

Trading recommendations

• Support levels: 1.1690, 1.1650
• Resistance levels: 1.1720, 1.1735, 1.1765

If the price fixes below 1.1690, EUR/USD quotes are expected to fall further. The movement is tending to 1.1650-1.1630.

An alternative could be the growth of the EUR/USD currency pair to 1.1745-1.1760.

The GBP/USD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.30069
• Open: 1.28972
• % chg. over the last day: -0.75
• Day’s range: 1.28832 – 1.29415
• 52 wk range: 1.1409 – 1.3516

Sales prevail on the GBP/USD currency pair. During yesterday’s trading session, the British pound lost more than 100 points. The trading instrument has updated local lows. At the moment, GBP/USD quotes are consolidating in the range of 1.2885-1.2940. The demand for greenback is still high. A further decline in the GBP/USD currency pair is possible. Financial market participants expect up-to-date information on the Brexit process. Positions should be opened from key levels.

The publication of important UK economic releases is not planned.

Indicators signal the power of sellers: the price has fixed below 50 MA and 100 MA.

The MACD histogram is in the negative zone, but above the signal line, which gives a weak signal to sell GBP/USD.

Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which indicates the bullish sentiment.

Trading recommendations

• Support levels: 1.2885, 1.2850, 1.2800
• Resistance levels: 1.2940, 1.2975, 1.3005

If the price fixes below 1.2885, a further decline in the GBP/USD currency pair is expected. The movement is tending to 1.2850-1.2820.

An alternative could be the growth of GBP/USD quotes to 1.2975-1.3000.

The USD/CAD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.31421
• Open: 1.32247
• % chg. over the last day: +0.56
• Day’s range: 1.32048 – 1.32375
• 52 wk range: 1.2949 – 1.4669

The USD/CAD currency pair has been growing. During yesterday’s trading session, the growth of quotes exceeded 80 points. The trading instrument has updated local highs. At the moment, the loonie is consolidating in the range of 1.3200-1.3250. The demand for the US dollar has grown significantly. Further growth of USD/CAD quotes is possible. We recommend paying attention to the dynamics of “black gold” prices. Positions should be opened from key levels.

The news feed on Canada’s economy is calm.

Indicators signal the power of buyers: the price has fixed above 50 MA and 100 MA.

The MACD histogram is in the positive zone, but below the signal line, which gives a weak signal to buy USD/CAD.

Stochastic Oscillator is in the neutral zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations

• Support levels: 1.3200, 1.3170, 1.3125
• Resistance levels: 1.3250, 1.3285, 1.3335

If the price fixes above 1.3250, further growth in USD/CAD quotes is expected. The movement is tending to 1.3280-1.3300.

An alternative could be a decline of the USD/CAD currency pair to 1.3170-1.3150.

The USD/JPY currency pair

• Prev Open: 105.121
• Open: 105.437
• % chg. over the last day: +0.28
• Day’s range: 105.192 – 105.443
• 52 wk range: 101.19 – 112.41

The USD/JPY currency pair is in a sideways trend. There is no defined trend. Quotes are testing local support and resistance levels: 105.20 and 105.50, respectively. The trading instrument has the potential for further decline. We recommend paying attention to the dynamics of US government bonds yield. Positions should be opened from key levels.

The news feed for Japan’s economy is calm.

Indicators do not give accurate signals: the price has crossed the 50 MA and 100 MA.

The MACD histogram has started declining, which indicates the bearish sentiment.

Stochastic Oscillator is in the neutral zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations

• Support levels: 105.20, 105.05, 104.70
• Resistance levels: 105.50, 105.65, 105.80

If the price fixes below 105.20, a further fall in USD/JPY quotes is expected. The movement is tending to 104.80-104.60.

An alternative could be the growth of the USD/JPY currency pair to 105.70-105.90.

by JustForex

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

By Admiral Markets

Source: Economic Events October 16, 2020 – Admiral Markets’ Forex Calendar

After EURUSD pushed back above 1.1800, the currency pair failed to stabilise above it.

While one reason could be the ongoing and tedious discussions around an economic relief package between Democrats and Republicans, the driving factor behind drops lower in the first half of this week of trading was certainly the US inflation data on Tuesday.

US core inflation came in at 1.7%, slightly below the market consensus of 1.8%, helping the US-Dollar catch a bid, most likely due to diminishing optimism of a short-term drop in real US yields back below -1%.

When taking a step back, we are still considering mid-term long engagements favourable in EURUSD, seeing the currency pair with upside potential significantly above 1.2000 in the next 6 to 12 months.

This is because the overall US economic outlook leaves Republicans and Democrats with no other choice than to deliver a much needed Corona relief package, financed with freshly printed US-Dollar from the US central bank FED, which will, thus, weaken the US-Dollar.

Given the still extended net-long exposure in EuroFX futures, long engagements in EURUSD should nevertheless be taken cautiously since such a long bias makes the Euro vulnerable to ECB easing talks at the ECB meeting on the 29th of October (and probably even earlier).

Here’s our take:

• Technically the key level on the downside can be found at around 1.1600
• A push below would probably be initiated by some dovish ECB rhetoric, which would activate the region around a potential mid-term long-trigger of 1.1450/1500.

Should such a push lower not happen:

• The USD would start to weaken again (probably due to weak US Retail Sales data today)
• A push back above 1.1830 would activate 1.1900 on the upside

This could take it above the current yearly highs at around 1.2000:

Source: Admiral Markets MT5 with MT5SE Add-on EURUSD Daily chart (between July 10, 2019, to October 15, 2020). Accessed: October 15, 2020, at 10:00 PM GMT. Please note: Past performance is not a reliable indicator of future results, or future performance.

In 2015, the value of the EURUSD fell by 10.2%, in 2016, it fell by 3.2%, in 2017, it increased by 13.92%, in 2018, it fell by 4.4%, and in 2019, it fell by 2.2%, meaning that in five years, it was down by 7.3%.

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Disclaimer: The given data provides additional information regarding all analysis, estimates, prognosis, forecasts or other similar assessments or information (hereinafter “Analysis”) published on the website of Admiral Markets. Before making any investment decisions please pay close attention to the following:

1. This is a marketing communication. The analysis is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
2. Any investment decision is made by each client alone whereas Admiral Markets shall not be responsible for any loss or damage arising from any such decision, whether or not based on the Analysis.
3. Each of the Analysis is prepared by an independent analyst (Jens Klatt, Professional Trader and Analyst, hereinafter “Author”) based on the Author’s personal estimations.
4. To ensure that the interests of the clients would be protected and objectivity of the Analysis would not be damaged Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.
5. Whilst every reasonable effort is taken to ensure that all sources of the Analysis are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis. The presented figures refer that refer to any past performance is not a reliable indicator of future results.
6. The contents of the Analysis should not be construed as an express or implied promise, guarantee or implication by Admiral Markets that the client shall profit from the strategies therein or that losses in connection therewith may or shall be limited.
7. Any kind of previous or modelled performance of financial instruments indicated within the Publication should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
8. The projections included in the Analysis may be subject to additional fees, taxes or other charges, depending on the subject of the Publication. The price list applicable to the services provided by Admiral Markets is publicly available from the website of Admiral Markets.
9. Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, you should make sure that you understand all the risks.

By Admiral Markets