ZuluTrade Blog
Image

Market View

Daily FX Market Outlook - Stimulus in focus

Thursday, October 22, 2020 5:01 PM GMT

Heated negotiations continue between the Republicans and Democrats over the impending COVID-19 stimulus package. Nancy Pelosi, the US House Speaker,  believes despite negotiations having “come a long way”, the final stimulus package will not be approved before the presidential election.

This will likely be a contentious topic during the impending second debate between Trump and Biden, happening later today.  We expect ongoing nervousness from the US stock market, also keeping in mind Trump still has not committed to a peaceful transfer of power if he loses the November elections. 

CopyTrade with ZuluTrade

Reviewing today’s agenda,  the weekly US Jobless Claims were lower than expected, rising by 787k last week. UK Business Optimism has minor-changed to 0 from -1, while Factory Orders increased by 14 points to -34 which is the highest level since March. 

Regarding COVID-19, global infections have reached 41mil, while deaths have now risen above 1.1mil. Οnce again, Europe has become the focus of the pandemic, with one country after another implementing additional measures to reduce the spread of the virus.

EURUSD

The fiber is currently testing 20EMA and still maintains its bullish bias in 240min. If the pair violates 1.1871 to the upside, it will accelerate towards previous highs.

240m

GBPUSD

The cable failed to breakout the 61.8% Fibonacci level which still remains a solid resistance. As long as the pair remains above 50%, then it still bullish. On the other hand, falling below 50%, it may move towards the 38.2% level.

240m

CopyTrade with ZuluTrade

USDJPY

The pair is potentially forming a bearish flag and the 78.6% Fibonacci level is critical as support. 

60m

AUDUSD

Aussie is moving between 20EMA and 50SMA which can be considered as a positive indication for the bulls. However, if the pair closes below 20EMA, it will negate the bullish scenario.

240m

CopyTrade with ZuluTrade

Checking the ZuluTrade’s Traders Sentiment, the community is currently bullish on GBPJPY while neutral with the rest of the pairs.

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.

Comments are closed

Trading spot currencies involves substantial risk and there is always the potential for loss. Your trading results may vary. Because the risk factor is high in the foreign exchange market trading, only genuine "risk" funds should be used in such trading. If you do not have the extra capital that you can afford to lose, you should not trade in the foreign exchange market. Forex Brokers and ZuluTrade are compensated for their services through the spread between the bid/ask prices or there may be a cost to initiate a trade through the bid/ask spread. Signing up is totally free, and there is NO contract and NO monthly fees, ever.

This blog is for informational purposes only. This blog is not intended for distribution channels and may not be reproduced or distributed without the permission of Zulu Trade ltd or any of its affiliated entities (“ZuluTrade”). All opinions, news, prices or other information contained in this blog are provided as general market commentary and this report does not contain and it is in not to be considered in any circumstance as market analysis, offer or solicitation to buy or sell any financial instruments, personalized or general recommendation for any investment decision or investment strategy by ZuluTrade, in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. The information contained in this blog should not be construed as financial or investment advice on any subject matter. The financial instruments referred to herein may not be suitable for all investors and any investments on such financial instruments requires the assessment by each investor and its counsels of the investor’s investment characteristics, including the investment risks which the latter is willing to assume. This blog has been based on information which has been made public, obtained from sources believed to be reliable, but it has not been verified by ZuluTrade. No representation or warranty (expressed or implied) is made as to the accuracy, completeness, correctness, timeliness or fairness of the information or opinions herein, all of which are subject to change without notice. No responsibility of liability whatsoever of howsoever arising is accepted in relation to the contents hereof by ZuluTrade or any of its directors, officers, employees. Further, no representation is being made that any results will be achieved, and past performance is not indicative of future performance.