Monday, November 9, 2020

EUR / USD Has 'Climbed' 300 Pips, Expected To Be Higher This Week

 The 2020 United States (US) Presidential Election is over and Joe Biden has officially been announced as the 46th US President.

However, the decision does not seem to be well received by Donald Trump, who claims that there is a lack of transparency in the counting process.

Biden’s victory has boosted the stock market while the US dollar is now trading weaker against other major currencies.

Larger economic stimulus is expected to be implemented and Biden has announced that a special Covid-19 team will be announced today in an effort by the government to curb the spread of pandemics.

It can be seen that the price movement shows the US dollar weakening against the major currencies as shown on the EUR / USD chart.

The early fall in election day counting has seen the price test the support zone at 1.16100 before rising prices following the US dollar's depreciation.

The price has managed to cross the RBS zone (resistance become support) before heading to the resistance zone below the level of 1.19000 until the end of last week's trading. Weekly price increases have been recorded reaching around 300 pips.

The price has moved below 1.19000 since the price decline that occurred in early September with the level of 1.16100 to be the price support level.

The price opened below the 1.19000 high in the Asian session this morning for the start of trading this week with the price movement looking slow and flat.

The expected price increase will continue beyond 1.19000 with the next focus destination being at the altitude of 1.20000.

However, if the resistance zone 1.19000 fails to break through, the price is seen to come down again to test the RBS zone 1.18000 and the Moving Average 50 (MA50) support level at the 1 hour price movement will also be tested to determine the direction of further price trends.