The dollar was little changed, and the pound likely to rise 600 points in the fourth quarter (With trading strategy)

The dollar was little changed in Asian trade on Wednesday, as traders assessed a fierce first debate between Republican President Donald Trump and Democratic rival Joe Biden ahead of the November 3 U.S. presidential election.

On Wednesday, the U.S. dollar rebounded, at 15:30 (GMT+8), the U.S. dollar index was 94.052, the increase was 0.13%.

Analysts said neither candidate emerged from the debate with a decisive advantage. Judging from the markets' reaction, more uncertainty was created.

Many market strategists have cited uncertainty around the election as a key headwind for the market before year-end, with each outcome bringing its risks and benefits. Some investors have raised concerns about a potential Biden win as they fear it could lead to higher corporate taxes and regulations. But at the same time, it could ease concerns about the trade war and lack of stimulus to bolster the economy in the wake of the coronavirus.

On Wednesday, GBP/USD fell, 15:30 (GMT+8), GBP/USD quoted 1.281, a decrease of 0.35%. The GBP/USD is struggling due to Brexit concerns. Irish border still a key Brexit obstacle. Ursula von der Leyen, the European commission president, said she believed it was still possible to reach an agreement.

Mitsubishi UFJ Bank predicts that if the UK and the EU reach a Brexit agreement, the GBP/USD will soar to 1.35 in the fourth quarter.

On Wednesday, the USD/JPY fell from its high point. At 15:30 (GMT+8), the USD/JPY quoted 105.593. More funds are shifting to the safe-haven yen asset market after Trump and Biden clash in the first debate.

Trading Strategy (source: Trading Central)

Pivot: 1.2875

Our preference: short positions below 1.2875 with targets at 1.2800 & 1.2780 in extension.

Alternative scenario: above 1.2875 look for further upside with 1.2900 & 1.2930 as targets.

Comment: the RSI shows downside momentum.

Supports and resistances:

1.2930

1.2900

1.2875

1.2822 Last

1.2800

1.2780

1.2750

Pivot: 105.80

Our preference: short positions below 105.80 with targets at 105.40 & 105.20 in extension.

Alternative scenario: above 105.80 look for further upside with 106.00 & 106.20 as targets.

Comment: the RSI lacks upward momentum.

Supports and resistances:

106.20

106.00

105.80

105.59 Last

105.40

105.20

105.00

Guideline for Trading Central strategy 

Trend chart reading guideline

1. First look at the time period in the upper left corner of the chart: ·30MIN and 1H chart shows the trading suggestions for intraday ·Daily chart shows the market trend analysis in next 2-3 days

2. The blue horizontal line on the chart marks the pivot: pivot indicates the reversal of the market. When the price is above the pivot, it indicates an upward trend, when the price is below the pivot , it indicates a downward trend. When the price breaks through the pivot, the trend is reversed.

3. The red and blue thin curves in the Candlestick chart chart are technical indicators: Red line is MA20+Bollinger bands, Blue line is MA50. under the Candlestick chart chart are also the technical indicators: Blue line is RSI, Red line is 9MA;

4. The green horizontal line is the resistance level for a price increase, and is also the profit target for long orders; the red horizontal line is the support level for a price decrease, and is also the profit target for short orders.

How to use TC strategy？

1.[Pivot] is the reversal line of the market trend. When the price up the pivot line which means in Bullish, you can open a long position or Buy. on the contrary, when the price under pivot line which means in bearish. You ‘d better make short positions or Sell. 

2. [our preference] is the main trading suggestion for your reference. You can exit your trading refer to this target or close positions before it.

3. [Alternative scenario] is the plan B for your reference. 

4. [Comment] is the technical analysis of market trends and technical support for trading strategies. 

5. [Supports and resistance] Supports are levels where the price tend to find support as it falls.

Resistances are levels where the price tend to find resistance as it rises. So, exit before the trend reverse.