Strong risk aversion hit markets on Thursday as fading prospects for economic recovery after European governments tightened restrictions to battle an accelerating second wave of coronavirus, prompted investors into safety.
The dollar was the top gainer of the European session, with dollar index being up nearly 0.4% for the session.
Fresh advance extends recovery from 92.99 (09 Oct low) into fourth straight day and cracks important barriers at 93.67/74 (Fibo 38.2% of 94.78/92.99/20DMA). Bulls look for clear break here that would generate fresh signal for recovery extension towards next pivots at 94.00/09 (round-figure/Fibo 61.8% of 94.78/92.99).
Fundamentals work in favor of greenback but technical studies lack clearer signal as RSI and Stochastic are heading north but momentum indicator remains in negative territory.
However, today's action is on track to form bullish engulfing pattern that would add to positive signals, with close above 92.70 required to confirm. Converged 10/30DMA's mark initial support at 93.54, guarding lower pivot at 93.28 (55DMA).

Res: 93.75; 93.95; 94.09; 94.35
Sup: 93.54; 93.41; 93.28; 93.10


The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis

Latest Forex Analysis

Editors’ Picks

AUD/USD: Consolidates heaviest gains in two weeks above 0.7100 amid cautious optimism

AUD/USD eases from weekly high of 0.7137 marked on Wednesday. Virus woes, dovish tone of Fed’s Bullard also probe the optimists. RBA’s Debelle, NAB Business Confidence will offer immediate direction, risk news remain as the main driver.


USD/JPY bounces off monthly low towards 105.00 as market optimism fades

USD/JPY retraces the biggest losses in two months from 104.34. S&P 500 Futures, Nikkei 225 drop around 0.50%, stocks in Pacific are also down. Japan’s All Industry Activity Index, risk catalysts will be the key to watch.


Gold bulls await fresh clues to probe monthly top below $1,950

Gold buyers catch a breather above $1,920 after posting the biggest gains in a fortnight. COVID-19 data from US states, Victoria propel fears of wider wave 2.0. US Initial Jobless Claims, aid package updates will be the key.

Gold News

WTI: Buyers lurk around 100-day EMA

WTI bounces off $39.83, the lowest in one week, to battle 50% Fibonacci retracement. EIA inventories recovered from -3.818M prior, -1.021M forecast. The energy benchmark dropped the lowest since October 15 the previous day.

Oil News

2020 Elections: Trump is is showing signs of a comeback, will the dollar follow?

"It ain't over till the fat lady sings" – goes the adage which is relevant for the 2020 Presidential Elections as well. Two weeks ahead of election day, there are signs that incumbent Donald Trump is clawing back some support, raising the chances that the race could drag on for longer.

Read more

Forex Majors