USD strengthened as optimism waned

USD strengthened as optimism waned

Fundamentals

  • The market optimism waned amid stricter restrictions to control rising coronavirus infections. S&P 500 and Nasdaq dropped from the all-time highs, while the USD jumped higher.
  • President Joe Biden warned that the Covid-19 pandemic will worsen before it improves.
  • Hong Kong will for the first time lock down tens of thousands of citizens to take the virus spread under control. It added to the overall risk-off tone in markets.
  • ECB President Christine Lagarde cautioned that the Covid-19 continues to present a severe risk. The central bank will continue pumping huge amounts of money to support the economy.
  • Elsewhere, oil dropped amid Friday’s risk-off mood.
  • All attention to PMI reports from the EU, UK, and USA during the day.

Technical tips

EUR/USD

Since the pair touches the upper line of Bollinger Bands, we can assume that it should fall till it reaches the 50-period moving average of 1.2140. The move below this level will drive the euro lower to the next support of 1.2100. Resistance levels are 1.2180 and 1.2220.

EURUSDH4.png

GBP/USD

The British pound dropped below the key support of 1.3700, but the 50-hour moving average constrained the further falling. It’s more likely to reverse up as it could be just a natural selling after the breakout above 1.3700. If it rises above 1.3740, the way up to 1.3750 will be open.

GBPUSDH1.png

Gold

XAU/USD is trying to break down the support of $1 860 but has failed to do it so far. If it manages to do so, it will plunge to the 50-period moving average of $1 850. On the flip side, the move above yesterday’s high of $1 875 will push the pair up to $1 885.

XAUUSDH4.png

AUD/USD

The aussie may turn to the upside now as it touches the 50- and 100-period moving averages at 0.7730. The move above yesterday’s high of 0.7780 will drive the pair up to 0.7800. Support levels are 0.7730 and 0.7690.

AUDUSDH4.png

TRADE NOW

Similar

US Dollar Might Get Under Pressure After These Events
US Dollar Might Get Under Pressure After These Events

Today, two events will shake the US dollar. First, at 16:45 GMT+2, Markit, a statistical company, will release the US Flash Services PMI. Moreover, at 21:00 GMT+2, the Federal Reserve will release its meeting minutes.

Traders Should Know About These Releases
Traders Should Know About These Releases

The G20 summit and the US PPI release gave us a lot of volatility to trade on. Luckily, today’s markets may be even more volatile with new vital releases and geopolitical decisions. The daily news report will surely help you!

Latest news

Chinese workers are on strike
Chinese workers are on strike

  Good morning, dear traders! Hope you’re doing great! Let’s talk about the news that is worth following today!  Key market events: 15:30 MT, CAD GDP m/m 17:00 MT, GBP BOE Gov Bailey Speaks Oil is tensed again Oil rose as China refined its approach…

How to trade the JPY?
How to trade the JPY?

Happy Friday, traders! Are you ready to trade at the end of the week? Here’s what you need to know before you start:

FOMC Minutes Brought Insights
FOMC Minutes Brought Insights

Hello, dear traders! We hope you have a great day! Let’s see what news is worth following today! Market closing US stock exchanges will be closed due to the Thanksgiving holiday…

Deposit with your local payment systems

Feel the Team Spirit

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera