Forex forum currency trading news and analysis today
EUR/USD has rebounded sharply on the final trading day of the week amid a spike in broader market volatility owing to concerns about a new, potentially vaccine-resistant, Covid-19 variant in South Africa. The pair has rebounded to just below 1.1300 from early Friday Asia Pacific session lows just above 1.1200, a near 90 pip (roughly 0.8%) rally on the day. If the pair closes the week out at current levels, that would mark its best one-day performance since early May.
Moreover, EUR/USD is already at its weakest since June 2020, and today's slight bounce is certainly overdue: see the oversold signal from the relative strength index, under the main chart, that is around the 30 level. However, longer-term, it remains hard to imagine the Euro recovering as the spread of Covid-19 through Continental Europe continues.
This week, third-quarter data showed that GDP in Germany was up just 1.7% quarter/quarter, rather than the 1.8% estimated previously, and consumer confidence figures showed a larger-than-expected drop. This economic weakness can only be made worse by the latest surge in coronavirus infections and hospitalizations that has prompted lockdowns and other measures that have been met by protests and even rioting.
On the other hand, A new day a new 11-month low for the pound against the dollar. The GBP USD pair slumped to 1.3304 on Thursday as the prospect of the US Federal Reserve tightening policy faster than expected gave the US currency a boost.
The Thanksgiving national holiday in the US meant monetary policy themed rhetoric from the central bank earlier in the month was driving dollar demand yesterday.
On Wednesday evening, the minutes from the Fed's November meeting hinted at speeding up the winding down of its stimulus programme and hiking interest rates earlier than anticipated to control rising inflation.
Dow futures -2.3% at 35035
S&P futures -1.7% at 4628
Nasdaq futures -1.06% at 16224
FTSE -2.9% at 7093
Dax -2.96% at 15441
Euro Stoxx -3.5% at 4141
On the other hand, An additional signal in favor of the rise of the Dollar/Ruble pair will be a rebound from the upper border of the descending channel, which was broken up by buyers. The second signal will be a rebound from the support line on the relative strength index (RSI). Cancellation of the growth option for the Dollar/Ruble pair will be a fall and a breakdown of the 69.45 area. This will indicate a breakdown of the support level and a continued fall in the US Dollar against the Russian Ruble with a target below 67.05. It is worth waiting for confirmation of a rise in the pair with the breakdown of the resistance area and closing of the USD/RUB quotes above the level of 75.55.
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