EURUSD, H4
The Forex market is once again turbulent, due to the increasing number of people infected with the virus reigniting concerns that the winter months may bring on another wave. Recently, France and Germany announced a lockdown in certain areas of the country. Germany will start its lockdown on November 2, the announcement of which resulted in the DAX, or GER30, dropping 503 points (-4.17%), followed by a 3.5% average negative US stock index.
Results from the return of the coronavirus caused the US Dollar, as a safe haven currency, to strengthen again, helped by the postponing of the consideration of a new stimulus package to the United States until after the election. This boosted the USDIndex to go up from the 93.10 area to close at 93.46.
From a technical point of view, the H4 pair is still supporting itself in an uptrend. After yesterday breaking a low of 1.1720, it is now trading below the MA200 line at 1.1753, where if it can break up, it has a chance to test the psychological resistance level 1.1800. The key support today is in the area low yesterday at 1.1720.
Today will be another big day for the EURUSD as at 12:30 (GMT) the US GDP figures will be announced, and at 12:45 pm there will be the ECB’s interest rate decision-making meeting and monetary policy, where interest rates are expected to be maintained, followed by the press conference 45 minutes later. Markets are still waiting to see if the new Covid-19 outbreak will cause the PEPP program to be modified or expanded.
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Chayut Vachirathanakit
Market Analyst – HF Educational Office – Thailand
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