USD Overview

Yesterday, USD strengthened against most major currencies except JPY.

In his speech yesterday, Federal Reserve Chairman Powell said that continued fiscal and monetary stimulus is necessary for the full recovery of the economy. He also emphasized that the recovery will be stronger if both monetary and fiscal policy continue to work hand in hand.

Hours later, President Trump announced that he has instructed his representatives to stop the negotiation of COVID-19 stimulus package with the Democrats until after the presidential election. He also highlighted that his government will pass a major stimulus bill targeted at hardworking Americans and small businesses right after he wins the election. The Federal Reserve will be releasing the minutes for the previous monetary policy meeting tomorrow at 0200 (SGT).


NZD/USD Outlook

Overall, NZD/USD is ranging across. Recently, NZD/USD weakened as the market takes on a risk-off view of the market after President Trump announced the stopping of the negotiation of the COVID-19 stimulus bill.

NZD/USD’s next support zone is at 0.65200 and the next resistance zone is at 0.67600.
Look for short-term selling opportunities of NZD/USD up until the release of the monetary policy meeting minutes by the Federal Reserve tomorrow at 0200 (SGT).


AUD/USD Outlook

Overall, AUD/USD is ranging across. Recently, AUD/USD weakened and rejected the resistance zone of 0.71700 due to the announcement made by the Australian Treasury and the risk-off view of the market after President Trump announced the stopping of the negotiation of the COVID-19 stimulus bill.

Yesterday, the Reserve Bank of Australia kept monetary policy unchanged.
During the annual budget release yesterday, Australia’s treasurer Josh Frydenberg highlighted that the country’s net debt will increase to $703 billion, equivalent to 36% of GDP this year.

AUD/USD’s next support zone is at 0.69800 and the next resistance zone is at 0.71700.
Look for short-term selling opportunities of AUD/USD up until the release of the monetary policy meeting minutes by the Federal Reserve tomorrow at 0200 (SGT).


USD/JPY Outlook

Overall, USD/JPY is ranging across.

USD/JPY’s next support zone is at 105.400 and the next resistance zone is at 106.800.
Look for short-term buying opportunities of USD/JPY up until the release of the monetary policy meeting minutes by the Federal Reserve tomorrow at 0200 (SGT).


EUR/USD Outlook

Overall, EUR/USD is ranging across. Recently, EUR/USD weakened as the market takes on a risk-off view of the market after President Trump announced the stopping of the negotiation of the COVID-19 stimulus bill.

ECB President Lagarde will be speaking later at the Paris Europlace online International Financial Forum at 2010 (SGT). During this time, there may be volatility in EUR.

Currently, EUR/USD is testing the support zone of 1.17400 and the next resistance zone is at 1.19700.
If EUR/USD breaks the support zone of 1.17400, look for short-term selling opportunities of EUR/USD up until the release of the monetary policy meeting minutes by the Federal Reserve tomorrow at 0200 (SGT).


GBP/USD Outlook

Overall, GBP/USD is trending downwards. Recently, GBP/USD weakened and bounced off the resistance zone of 1.30200 as the market takes on a risk-off view of the market after President Trump announced the stopping of the negotiation of the COVID-19 stimulus bill.

The UK construction PMI data (Actual: 56.8, Forecast: 54.0, Previous: 54.6) released yesterday indicated a continued expansion in the construction sector in September.

GBP/USD’s next support zone is at 1.28000 and the next resistance zone is at 1.30200.
Look for short-term selling opportunities of GBP/USD up until the release of the monetary policy meeting minutes by the Federal Reserve tomorrow at 0200 (SGT).


USD/CAD Outlook

Overall, USD/CAD is trending upwards. Recently, USD/CAD strengthened as the market takes on a risk-off view of the market after President Trump announced the stopping of the negotiation of the COVID-19 stimulus bill.

The Canadian trade balance data (Actual: -2.4B, Forecast: -2.1B, Previous: -2.5B) released yesterday indicated a slight narrowing of trade deficit.

USD/CAD’s next support zone is at 1.32200 and the next resistance zone is at 1.34200.
Look for short-term buying opportunities of USD/CAD up until the release of the monetary policy meeting minutes by the Federal Reserve tomorrow at 0200 (SGT).


GBP/JPY Outlook

Overall, GBP/JPY is trending downwards. Recently, GBP/JPY trended lower and broke below the key level of 137 as the market takes on a risk-off view of the market after President Trump announced the stopping of the negotiation of the COVID-19 stimulus bill.

The UK construction PMI data (Actual: 56.8, Forecast: 54.0, Previous: 54.6) released yesterday indicated a continued expansion in the construction sector in September.

Currently, GBP/JPY is testing the next support zone of 136.200 and the next resistance zone is at 138.100.
Look for selling opportunities of GBP/JPY if it breaks the support zone of 136.200.


EUR/JPY Outlook

Overall, EUR/JPY is trending downwards. Recently, EUR/JPY bounced off the resistance zone of 124.600 as the market takes on a risk-off view of the market after President Trump announced the stopping of the negotiation of the COVID-19 stimulus bill.

ECB President Lagarde will be speaking later at the Paris Europlace online International Financial Forum at 2010 (SGT). During this time, there may be volatility in EUR.

EUR/JPY’s next support zone is at 121.700 and the next resistance zone is at 124.600.
Look for selling opportunities of EUR/JPY.


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By Jin Dao Tai

JinDao Tai is an Entrepreneur, Award-Winning Forex Coach & Trainer, International Speaker and Multi-Million Dollar Trader. Starting out his career as an economic & financial consultant in Australia, one day he decided to change his life and pivoted into multiple entrepreneurship endeavours and eventually into managing a multi-million dollar portfolio.

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