The EURUSD Moves To Bullish Territory As Markets Stay Cautious Before US Elections

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker!
    Perfect For Beginners!
    Free Trading Education!
    Free Demo Account!
    Sign-up Bonus:

  • Binomo
    Binomo

    Good Choice For Experienced Traders!

Contents

The EURUSD Moves To Bullish Territory As Markets Stay Cautious Before US Elections

By Adam Teen | Monday, November 7th, 2020

The markets are in cautious sentiments at the moment because of the US Presidential elections this coming week. The EURUSD in particular closed higher because of some understandable reasons to stay away from the dollar in favour of the Euro.

The dollar flop continued even with a very strong jobs report from the US and further expectations that the Federal reserve would hike interest rates in December.

However, the cautious atmosphere still kept the pair within its medium-term range, allowing plenty of opportunities for profitable trades.

Mid term outlook of EURUSD

From a medium term perspective, the pair seems to be driving back to its recent bullish trend. The trend that was panning out before the consolidation seen in the last two weeks.

Chart: EURUSD Daily chart with Fib levels

If a Fib is traced between the August peak of 1.1365 and the most recent bottom at 1.08432 (October 25 th ), it is notable that last week’s political interference let the price close just above the 50% line mark and is fast headed towards the 61.8% level, 1.1176.

With the high likelihood of the dollar uncertainty continuing into next week, important zones to look at include our first target of 1.1176 and the second target 1.1200.

We would be looking to buy the EURUSD current rise on subsequent price relaxations and cashing in on the bullish frenzy.

The bullish recovery can be termed as active as long as the price remains above our first support at 1.1000, a crucial psychological level, but also nearest to the 23.6% level of the Fibonnaci retracement plotted in the Daily graph.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker!
    Perfect For Beginners!
    Free Trading Education!
    Free Demo Account!
    Sign-up Bonus:

  • Binomo
    Binomo

    Good Choice For Experienced Traders!

On the flip side, a break below 1.1000 would dampen our view of this bullish recovery continuing and will set our focus back towards a continuation of the late October drop in the EURUSD.

Narrowing down to smaller time frames

For quick trades, a closer look at the 4 hour chart shows that the bullish candles still look stronger than the bearish candles. The shorter term uptrend is active coming into the new week.

The price remains above the 200MA and that can be a good reference point to place “safe longs”. The H4 200MA lays out a nice yardstick for the long Binary entries as long as the 1.1000 (23%) stays valid.

As an opportunity, place a Bid at 1.11070 (50%Fib) and above targeting 1.1630 (68%Fib) as a very possible target in the current conditions. Buying lower is highly recommended because the coming week is bound to have some whipsawing involved.

Chart: EURUSD 4 Hour chart with entries and targets

DISCLAIMER – The above is a matter of opinion provided for general information purposes only and is not intended as investment advice.

EURUSD – Bullish conditions remain

EUR/USD

Bullish conditions remain.

EUR/USD is now consolidating after its recent rally. The pair is trading above former strong resistance given at 1.1300 (09/11/2020 high). Hourly support can be found at 1.1076 (18/05/2020 low). Stronger support lies at 1.0842 (11/05/2020 low). Expected to show continued short-term strength.

In the longer term, the momentum is clearly negative. We favour a continued bearish bias towards parity. Key resistance holds at 1.1714 (24/08/2020 high) while strong support lies at 1.0341 (03/01/2020 low).

GBP/USD

Bullish.

GBP/USD’s momentum is higher than expected and the pair is now targeting key resistance give at 1.3046 (18/05/2020 high). Hourly support is given at 1.2589 (21/06/2020 low). Hourly resistance at 1.2818 (14/06/2020 high) has been broken. Expected to show further continued buying pressures.

The long-term technical pattern is even more negative since the Brexit vote has paved the way for further decline. Long-term support given at 1.0520 (01/03/85) represents a decent target. Long-term resistance is given at 1.5018 (24/06/2020) and would indicate a long-term reversal in the negative trend. Yet, it is very unlikely at the moment.

USD/JPY

Minor correction.

USD/JPY has pullback after strong bullish rally while remaining within an uptrend channel. Hourly support can be found at 110.65 (16/06/2020 low). Stronger support is located at 108.13 (17/04/2020 low). Expected to show continued pressures.

We favor a long-term bearish bias. Support is now given at 96.57 (10/08/2020 low). A gradual rise towards the major resistance at 135.15 (01/02/2002 high) seems absolutely unlikely. Expected to decline further support at 93.79 (13/06/2020 low).

This report has been prepared by AC Markets and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by AC Markets personnel at any given time. ACM is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.

FXStreet Trading Signals now available!

Latest Analysis

Latest Forex Analysis

EUR/USD extends slump after NFP shows massive job loss

EUR/USD is trading below 1.08, down on the day. The Non-Farm Payrolls report has shown a loss of 701,000 jobs, worse than expected. The ISM Non-Manufacturing PMI surprised to the upside with 52.5 points.

GBP/USD drops below 1.23 amid sour mood, after UK data

GBP/USD has dropped below 1.23 as the market mood sours. Final UK Services PMI dropped to 34.5 points, worse than expected.

NFP Quick Analysis: 701K jobs lost only be tip of the iceberg, why King Dollar is ready for coronation

The US lost 701,000 jobs in March, the worst in 11 years. The Non-Farm Payrolls figures are lagging the fast-moving events. Wage growth is also skewed and should be ignored. The safe-haven dollar has room to rise.

WTI trades in three-week’s highs near $26.50 a barrel

WTI is jumping from multi-year lows following the US President Trump’s tweet of yesterday (Thursday) suggesting a Saudi-Russian deal was on the pipeline.

Gold remains confined in a range, moves little post-NFP

Gold extended its sideways consolidative price action around the $1615 region and had a rather muted reaction to the US monthly employment details

Forex Majors

Cryptocurrencies

Signatures

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.

Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Binary Options News & Analysis

Latest news and developments in the financial markets with special emphasis on binary options. If you would like to submit your binary news for publication on this website please contact us at info (at) winatbinaryoptions.com.

Google Bans Apps Trading Binary Options via Google Play

Google has announced on their website that as of April of 2020 apps allowing users to trade binary options will be banned on Google Play.

Binary Options Become Gambling Products in Russia

Russia does things differently. In Europe the regulators are preparing to ban offering of binary options to retail investors (individual investors).

Banc de Binary is Closing Down Due to Regulatory Pressures in Isreal

One of the biggest and popular binary option brokers, the Isreal based Banc de Binary has announced today that it is gradually closing down its operation.

USDJPY – Two Weeks of Bullish Activity

The Japanese economy had gone through a mixed news atmosphere this past week making it plunge just as much as it climbed. However, the bulls have won the fight on this one, with the last month of trading seeing the pair make a 10.4% gain.

The NZD/USD Bears Have All the Reasons to Be Afraid

The NZD/USD has been on a remarkable decline since the US presidential election results were announced. That was mostly because of the strengthening dollar as the Kiwi still showed strong fundamentals in the last quarter of 2020.

The decline however slowed down with time and a low was reached towards the end of November, immediately setting the stage for a new recovery.

The Stage Is Set For the NZDUSD To Make A Channel Bottom Retest

The NZDUSD has traded in a rising channel for more than 12 months, but last week was the closest that the pair came to breaching that channel.
The price has since then recovered by a hairpin but this does not nullify the notion that the bearish stance for the most of September to November is over.

The EURUSD Moves To Bullish Territory As Markets Stay Cautious Before US Elections

The markets are in cautious sentiments at the moment because of the US Presidential elections this coming week. The EURUSD in particular closed higher because of some understandable reasons to stay away from the dollar in favour of the Euro.

A Mixed Week Ahead for the GBPUSD on Rate Decisions

The GBPUSD failed to gain any more ground after it made its decline last week. By the close of Monday’s Asian session, the price still lingered close to Friday’s closing price of 1.2189 marking a flat weekly open.

It has been a 2 week period marked by stronger bearish moves in stark contrast to the bullish recoveries.

USDJPY Gains Still Expected Even With Japan Rate Decisions

The USD showed weaknesses through last Friday’s New York trading session, but again recouped those losses later towards the end of Monday’s trading. Last week’s temporary dollar slump came as a result of political sentiments affecting the green buck.

CySEC Flexing Its Muscles Towards FX and Binary Brokers

The age of relaxed approach to administration and regulations for forex and binary options in the EU is coming to an end.

Bitcoin and Blockchain in 2020 – Report Summary

Much of the press this year has viewed Bitcoin in a negative light which has fuelled a bearish sentiment towards the cryptocurrency. However, CoinDesk’s recent report on the ‘State of Bitcoin and Blockchain in 2020’ claims that Bitcoin is far from being dead

CySEC Demands Clarity Over Name Changes of Forex and Binary Brokers

The Cyprus Securities and Exchange Commission, one of the most popular financial regulator based in Cyprus which is the watchdog of many well known forex and binary brokers have issued a new regulation about the name changing of operators.

Trading binary options in Ontario? Warnings from the Securities Commission (OSC)

If you’re trading binary options in Ontario, Canada you should make the The Ontario Securities Commission (OSC) your best friend.

Binary Options In the Context of Global Financial Crisis

It seems the news is not giving the facts enough coverage. If you look at the financial system and what’s happening it looks like 2020/2020 are going to be the year of market collapse and a full blown global financial crisis.

Banc de Binary Facing Resistance From Industry Watchdogs in Australia and New Zealand

Is Bitcoin Really Dead This Time? Mike Hearn Seems to Think So

First, before you jump into any conclusions and sell your bitcoin, keep in mind that Bitcoin has already been announced dead before, 89 times! And it is still alive and strong. Sure, after Hearn’s announcement it suffered a temporary fall of about $40 but it is now gaining strength again.

RBS Warns of Upcoming Economic Crisis

The Royal Bank of Scotland, which is one of the biggest banks in the UK warned investors that the year 2020 will be a ‘cataclysmic year’ for the stock market and that it could fall by a fifth

The Long 7-Year Wait is Over. The FED Decides Today!

The whole world is watching the markets today as the Federal Reserve announces the new interest rates at a news conference at 2:30pm EST. Fed chair, Janet Yellen is expected to raise the rates to 0.50% which should see the US dollar rise significantly in the upcoming year.

Malta Financial Services Authority Launches Consumer Portal

The Maltese Financial Services Authority (MFSA), which is responsible for the regulation for all financial markets in Malta (including binary options) has launched a full-fledged portal for consumers of financial trading products in Malta.

ASIC Suspends Retail OTC Derivative Licenses of Several Companies With Change of Shareholding

The Australian Securities and Investment Commission (ASIC) has once more exerted its regulatory control of the binary options market by suspending the licenses of several companies that have changed their shareholding structure outside of the guidelines governing the possession of the Australian Financial Services license.

EURUSD & GBPUSD Stay Bullish

Both EURUSD and GBPUSD have sustained their bullish technical outlooks since political events triggered significant upside activity in April.

For EURUSD, the bull gap (1.0818-1.0738) after the first round of the French Presidential election, signalled a bully shift above 1.0906, whilst resilient consolidation since then maintains an upside threat.

For GBPUSD, the strong rally’s after the calling of a UK election for Tuesday 18th April produced a break above a key peak at 1.2775, confirming a multi-month basing structure, pointing higher into May.

EURUSD – Bullish threat intact, despite setback

Despite remaining hesitant at the 1.0950 resistance peak, repeated rebound from the strong 1.0850 support maintains risk to the upside for Tuesday.

This activity leaves risk still higher from the aggressive bull gap in the wake of the French Presidential election results (gap 1.0818-1.0738), above the March peak at 1.0906, keeping an upside bias for Friday.

Furthermore, the push above 1.0906 also signalled an intermediate-term bullish shift.

For Today:

l We see an upside bias to aim at 1.0950 and 1.1000; break here aims for 1.1045.

l But below 1.0850 opens risk down to 1.0813, maybe 1.0778.

Intermediate-term Outlook – Upside Risks:

l We see a positive tone with the bullish threat to 1.1000.

l Above here targets 1.1300

What Changes This? Below 1.0568 signals a neutral tone, only shifting negative below 1.0493.

GBPUSD – Bullish threat

Another push higher on Monday, reinforcing the strong end to April above the mid-April spike high at 1.2906, sustaining upside pressures from the Tuesday 18th April aggressive surge above key resistance at 1.2775, aiming higher for Tuesday.

Furthermore, the push above 1.2775 produced a multi-month Triple/ Quadruple Bottom pattern, which signalled an intermediate-term bullish shift.

For Today:

l We see an upside bias for 1.2966; break here aims towards 1.3000 and maybe 1.3058.

l But below 1.2863 opens risk down towards 1.2803, which we would look to try to hold.

Intermediate-term Outlook – Upside Risks:

l We see a positive tone with the bullish threat to 1.3000.

l Above here targets 1.3121 and 1.3455/3534 area.

What Changes This? Below 1.2363 signals a neutral tone, only shifting negative below 1.2107.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker!
    Perfect For Beginners!
    Free Trading Education!
    Free Demo Account!
    Sign-up Bonus:

  • Binomo
    Binomo

    Good Choice For Experienced Traders!

Like this post? Please share to your friends:
Best Binary Options Trading Guide For Beginners
Leave a Reply

;-) :| :x :twisted: :smile: :shock: :sad: :roll: :razz: :oops: :o :mrgreen: :lol: :idea: :grin: :evil: :cry: :cool: :arrow: :???: :?: :!: