Market Daily FX Outlook – Greenback is reversing…

US dollar is grinding higher against its rivals as traders turned to a risk-off mode waiting for the corporate earnings and further developments on the coronavirus vaccine. 

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Reviewing today’s agenda news, the EU ZEW Economic sentiment dropped to 52.3 from 73.9 while German’s 56.1 from 77.4 respectively in September. Also, traders anticipate Bundesbank Wuermeling and Buch Speech shortly. UK unemployment rose more than expected (153k from 30k) while Labour productivity fell to -2%. Later today, Italy will sell 3-year dept with a 0% coupon at auction. During the US session, we are expecting US Inflation Rate YoY, US Consumer Inflation Expectations as well as the 3 and 6-Month Bill Auction.

EURUSD

The fiber is rising within the upward channel however bulls should hold the blue zone if they want to maintain the positive momentum. In any other case, sellers will step in and push the pair lower.

60m
EURUSDH1 13102020

EURJPY

The pair is trying to hold the major 200SMA. Also, it may form a falling wedge (not solid symmetry). The current level is critical.

60m
EURJPYH1 13102020

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GBPUSD

The cable follows the rising channel nicely but buyers have to hold the 1.30 level, otherwise, bears will have the control in case this level is violated to the downside.

60m
GBPUSDH1 13102020

USDCAD

The loonie is close to 261.8% Fibonacci extension level and traders should monitor RSI and MACD ‘s positive divergences.

60m
USDCADH1 13102020

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Checking the ZuluTrade’s Traders Sentiment, the community is currently bullish on EURUSD, GBPUSD, and GBPJPY while bearish on USDJPY.
sentim 13102020

Disclaimer

The views expressed do not constitute investment or any other advice /recommendation /suggestion and are subject to change. Reliance upon information in this material is at the sole discretion of the reader. Opinions expressed in the report do not represent the opinion of ZuluTrade Social Trading Platform and do not constitute an offer or invitation to anyone to invest or trade.