Monday’s trading was quiet with the U.S. dollar slightly appreciating versus its peers but without any profitable trading chances. Volatility was also muted due to a public holiday in the U.S. Monday, so let’s see what Tuesday brings.
We will keep an eye on the U.S. inflation rate release today at 12:30 UTC.
Investors weigh a potential setback on progress toward a coronavirus vaccine after a report that Johnson & Johnson's (NYSE:JNJ) Covid-19 vaccine study has been paused due to an unexplained illness in a participant. Any delay in the Covid-19 vaccine progress is generally considered dollar positive.
The uncertainty around the U.S. election and uncertainty about the timing and effectiveness of a vaccine will be the main market movers.
EUR/USD: Resistance is currently seen at 1.18 whereas the pair may find a short-term support at 1.1770.
GBP/USD: Cable has a strong support-zone between 1.30-1.2950. For accelerated bullish momentum we will need to see the pair trading above 1.3070 with a higher target at 1.3115.
DAX: If the index falls back below 13050, we may see a dip towards 13000. Remaining above 13100 higher targets could be at 13220.
Daily Forex Signals:
EUR/USD
Long @ 1.1840
Short @ 1.1765
GBP/USD
Long @ 1.3085
Short @ 1.3035
DAX® (GER30)
Long @ 13210
Short @ 13090
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