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

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Top Binary Options Broker 2020!
    Best Choice For Beginners!
    Big Sign-Up Bonus!
    Free Trading Education!
    Free Demo Account!

  • Binomo
    Binomo

    Only For Experienced Traders!

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.

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.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Top Binary Options Broker 2020!
    Best Choice For Beginners!
    Big Sign-Up Bonus!
    Free Trading Education!
    Free Demo Account!

  • Binomo
    Binomo

    Only For Experienced Traders!

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.

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.

CFTC report: EUR/USD rebound is corrective

According to the most recent CFTC report for the week March 17-24, large speculators increased their net long USD positions. Cost of the net bullish USD positions rose by $5.3B to $43.9B. Meanwhile, net EUR shorts hit a fresh record high of 220K contracts.

How could this information be useful for traders? Let me remind you that on March 18 the US Fed meeting stopped the long-lasting US dollar rally. As a result, EUR/USD recovered above the 1.1000 mark, gaining more than 600 pips over this period.

However, we see that the EUR/USD recovery is not reflected in the large players’ positioning. They are not in a hurry to close their net short EUR positions. What’s more, they opened the new ones at a higher levels. It means that the current growth is corrective and will be followed by a new wave of selling.

As for the other currency pairs, net GBP shorts increased slightly, while GBP shorts declined a little, reaching their lowest levels since 2020. Net CHF positions failed to fix in a bullish zone: this week they returned to the negative territory. NZD, AUD and CAD stayed almost unchanged.

By Kira Iukhtenko, FBS Markets

FOREX EU news, opinions, analyses, research, quotes, charts, or other information on this website is provided as general market commentary, and does not constitute investment advice. FOREX EU will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Top Binary Options Broker 2020!
    Best Choice For Beginners!
    Big Sign-Up Bonus!
    Free Trading Education!
    Free Demo Account!

  • Binomo
    Binomo

    Only For Experienced Traders!

Like this post? Please share to your friends:
Binary Options Trading Secrets
Leave a Reply

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