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Market News U.S. dollar up, U.S. GDP expands at record 33.1% (With Trading Strategy)

U.S. dollar up, U.S. GDP expands at record 33.1% (With Trading Strategy)

U.S. GDP expands at a record pace, and investors favor the dollar.

LEO
2020-10-30
1037

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The dollar firmed on Friday, and the euro wallowed near a four-week low against the greenback after the European Central Bank signaled further monetary easing by the end of the year.


By 11:30(GMT+8) on Friday, the U.S. dollar was 93.808.


Data on Thursday showed the U.S. economy grew at a record pace for the third quarter and an improving trend in jobless claims, while scars from the coronavirus recession still lingered.


U.S. GDP rebounded at a 33.1% annualized rate last quarter, according to an advance estimate on Thursday, the fastest pace since the government started keeping records in 1947.


Separately, a report showed 751,000 people in the United States filed for state unemployment benefits in the week ended Oct. 24, compared with 791,000 the previous period. 


”White House economist Joe LaVorgna said that the U.S. is in a “V-shaped, self-feeding” economic recovery.


“Although the data appears healthy, it should be taken with a grain of salt,” said Matthew Eidinger, market strategist at Cambridge Global Payments. He cited the rise in U.S. COVID-19 cases that could mean more restrictions, which could derail the economy’s recovery.


At 11:30 (GMT+8), the EUR/USD rose 0.17% to 1.1692. 


The ECB, which kept interest rates steady, committed on Thursday to contain the growing fallout from the second wave of coronavirus infections, saying it would hone its response by its December meeting.


“We agreed, all of us, that it was necessary to take action and therefore to recalibrate our instruments at our next Governing Council meeting,” ECB President Christine Lagarde told a news conference.


At 11:30 (GMT+8), the GBP/USD rose 0.08% to 1.2934. 


Sterling changed hands undermined by a lack of Brexit-related headlines as London, and the European Union have just two months to reach a post-Brexit trade agreement.


UOB commented, “we continue to expect GBP to trade between 1.2900 and 1.3120 for now.”


Trading Strategy (source: Trading Central)


Pivot: 1.1705


Our preference: short positions below 1.1705 with targets at 1.1650 & 1.1630 in extension.


Alternative scenario: above 1.1705 look for further upside with 1.1735 & 1.1760 as targets.


Comment: even though a continuation of the technical rebound cannot be ruled out, its extent should be limited.


Supports and resistances:

1.1760

1.1735

1.1705

1.1675 Last

1.1650

1.1630

1.1610


Pivot: 1.2950


Our preference: short positions below 1.2950 with targets at 1.2910 & 1.2890 in extension.


Alternative scenario: above 1.2950 look for further upside with 1.2980 & 1.3000 as targets.


Comment: as long as the resistance at 1.2950 is not surpassed, the risk of the break below 1.2910 remains high.


Supports and resistances:

1.3000

1.2980

1.2950

1.2929 Last

1.2910

1.2890

1.2875


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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