Vaccine hopes vs. Covid-19 resurgence

Vaccine hopes vs. Covid-19 resurgence

The market sentiment is mixed, and the US dollar is trading near the lowest levels for over two years. Let’s have a look at the main market movements today.

Fundamentals

  • Pfizer held the final trial and announced that its vaccine is 95% effective. The company will apply for the first US regulatory authorization this week.
  • However, the tug-of-war between vaccine hopes and the Covid-19 resurgence continues. Europe and the USA have imposed fresh social distancing restrictions. Just yesterday New York shut down schools, and that pushed the S&P 500 even lower.
  • Australia’s labor market is on the way to recovery. Employment change and the jobless rate were better than expected. However, AUD/USD is dipping, despite the optimistic data.
  • Good news for the UK: EU Trade Commissioner claimed that the Brexit deal is in the last moments to be reached. Elsewhere, UK’s inflation data beat estimates yesterday and that added tailwinds to the GBP as well.
  • Pay attention to the releases of the US data and Lagarde’s speech as it will impact most of the pairs!
Watch our daily video!

Technical tips

EUR/USD

EUR/USD has been nicely supported by the 50-period moving average so far, so we can assume that the pair can bounce off it and jump higher to the 1.1890-1.1900 area, where we can await the pullback. If it manages to break it, the way to 1.2000 will be clear. In the opposite scenario, if it drops below the 50-period moving average of 1.1835, it may fall to the next support of 1.18000.

EURUSDH4.png

GBP/USD

Fundamentals are positive for the pound, and GBP/USD is approaching the support of the 50-period moving average, so perhaps it should reverse and rally up. There is a strong resistance at the 1.3290-1.3300 zone. If it manages to break it, the way to the next round number of 1.3350 will be clear.

GBPUSDH4.png

Gold

XAU/USD is trading near the strong support of $1 860, which it has failed to cross several times already. Therefore, gold may turn to the upside and rise till it reaches the resistance of $1 880. However, if it breaks through $1 860, it may fall to September’s dips of $1 850.

XAUUSDH4.png

S&P 500

The S&P 500 has fallen below the 50-period moving average, and now it’s trying to regain its losses. If it jumps above the resistance of 3 590, the way up to 3 630 will be open. Support levels are 3 560 and 3 460.

S&P500H4.png

Check the economic calendar

TRADE NOW

Similar

USD Gains Momentum
USD Gains Momentum

The US dollar index breaks one resistance after another. Read the report to learn the next target for the US dollar index!

Latest news

No More US Debts in Sight
No More US Debts in Sight

The first day of June should’ve brought us the US default. Unsurprisingly, the US House passes the debt ceiling bill at the latest possible moment.

Gold Rises as Central Banks Buy More
Gold Rises as Central Banks Buy More

About 24% of global central banks intend to increase gold reserves in 2023. Rising inflation, geopolitical turmoil, and worries about interest rates are reasons to increase gold reserves.

US Evades Default This Time
US Evades Default This Time

Greetings to a brand new week full of events, economic releases and US debt frictions. We are here to tell you everything you need to know!

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