Euro And Pound With a Tailwind – Is The Rise Going To Continue?

Dear traders,

Basically, we got what we have been looking for – price breakouts that provided some profits for traders- even though not as big as we hoped for.

The EUR/USD broke above 1.1830 but stopped its rise at 1.1859 – for now. If the pair is able to hold above 1.18, we focus on a higher target at 1.1950. If bulls are however unable to stabilize the euro’s price above 1.1830, bears might regain control and push the pair back into its recent downtrend channel.

The GBP/USD broke above 1.31 and headed towards 1.3160 on the back of a weakening U.S. dollar on the one hand and a bigger-than-expected increase of the Bank of England’s QE program on the other hand. A higher target is seen at 1.32 while the 1.30-level turns into a crucial support again.

The Federal Reserve made no change to asset purchases while stressing that the U.S. economy needs more fiscal and monetary policy support, opening the door to a possible shift in coming months.

As for the U.S. election, Joe Biden holds his lead in many battleground states while President Donald Trump questions the credibility of the election. The results still remain uncertain.

This crucial trading week comes to an end and the last but important report will be the U.S. non-farm payrolls report due today at 13:30 UTC.

Have a wonderful weekend everyone!

 

We wish you good trades!

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