What drives the market on August 21?
The market sentiment has switched to risk-on today as US-China relationships are getting better. The US dollar is dipping down, while riskier assets are rising.
Tag - jpy - japanese yen
Coronavirus cases surge in Europe
USD/JPY is moving sideways between the pivot point at 105.708 and the resistance level at 106.26
The United States jobless claims will be released
USD/CHF is now testing the key resistance at 0.91519
August 20: consolidation
The consolidation that started on Wednesday is continuing so most currency pairs with the USD are going flat.
European markets slightly higher after the record highs of S&P500
The advance of S&P500 came as shares of big tech stocks rallied and reflected the trend of the past months of this year in equity markets.
S&P500 hit an all-time high in the previous session
USD/JPY: The pair is now trading within the cloud. Any decisive movement to the south will lead USD/JPY to exit the Kumo, confirming the bearish scenario.
August 19: the USD stalls
Most currency pairs with the USD are in consolidation currently as the USD has stalled its depreciation spree.
S&P500 in flirt with a new all-time high
ER/JPY: The EUR/JPY pair is now testing the upper level of the cloud. A successful attempt to exit the Kumo will signal a new bullish sentiment.
OPEC is set for a virtual meeting tomorrow
GBP/JPY: the pair is now trading slightly above the Kijun Sen. A failed attempt to move higher will lead GBP/JPY below the Kijun Sen.
How to trade on August 18?
Risk-on is back on the market. The US dollar is dipping down, while riskier currencies and stocks are rising.
S&P500 attempts last February’s record close
AUD/USD is now poised to test the hurdle at 0.72045
USD/JPY has broken down key support
The Japanese yen outperformed the US dollar. Here’s fresh trading ideas for the pair.
