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Market News The pound held above $1.30, the greenback held above 93(with trading strategy)

The pound held above $1.30, the greenback held above 93(with trading strategy)

The AUD came under selling pressure. The USD saw a mixed performance against G10 currencies.

Eden
2020-10-13
623

外汇.jpg


The U.S. dollar index, which tracks the greenback against a basket of its peers, was up 0.11% at 93.203 by 11:30(GMT+8) following its decline last week from levels above 93.6.


The greenback has held within a range of about 2% over the past three weeks as talks have gone back and forth. The dollar had its biggest loss in six weeks on Friday amid rising hopes a fiscal stimulus package would be agreed to stem the economic fallout from COVID-19. More stimulus is seen as negative for the dollar.


“The dollar just retains this soft underbelly on expectations that sooner or later there will be some stimulus out of Washington,” said Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington DC.


“At the same time, if you look at some of the election developments, the polls are trending in a way that is reducing worries about a contested outcome, that is more risk positive and therefore dollar negative.”


The EUR/USD was down 0.14% to 1.1795. In Europe, the World Health Organization has urged governments to restrict activity to combat a rapid rise in COVID-19 infections.


The USD/JPY rose slightly at 105.39 after Bank of Japan Governor Haruhiko Kuroda stressed his readiness to take additional monetary easing steps.


The pound held above $1.30, strengthening after Prime Minister Boris Johnson set out on Monday a three-tier system of local lockdown measures in England. GBP/USD was trading at 1.3044, up 0.16% by 11:30(GMT+8) on Tuesday.


The AUD/USD fell 0.48% to 0.7172 on Tuesday. 


The Aussie came under selling pressure at the beginning of the week after China set the yuan fixing at 6.7126, weaker than expected, while the PBOC lowered the FX risk reserve ratio to zero. The Australian dollar fell despite the greenback was under pressure against most other rivals, also ignoring a substantial advance in Wall Street’s futures.


Trading Strategy (source: Trading Central)


Pivot: 1.1815


Our preference: short positions below 1.1815 with targets at 1.1785 & 1.1770 in extension.


Alternative scenario: above 1.1815 look for further upside with 1.1830 & 1.1850 as targets.


Comment: a break below 1.1785 would trigger a drop towards 1.1770.


Supports and resistances:

1.1850

1.1830

1.1815

1.1794 Last

1.1785

1.1770

1.1755


Pivot: 1.3075


Our preference: short positions below 1.3075 with targets at 1.3030 & 1.3000 in extension.


Alternative scenario: above 1.3075 look for further upside with 1.3095 & 1.3115 as targets.


Comment: the RSI lacks upward momentum.


Supports and resistances:

1.3115

1.3095

1.3075

1.3043 Last

1.3030

1.3000

1.2970


Pivot: 0.7200


Our preference: short positions below 0.7200 with targets at 0.7150 & 0.7135 in extension.


Alternative scenario: above 0.7200 look for further upside with 0.7220 & 0.7235 as targets.


Comment: the RSI has broken down its 30 level.


Supports and resistances:

0.7235

0.7220

0.7200

0.7170 Last

0.7150

0.7135

0.7120



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.




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