Bullish Euro and Pound (EURUSD and GBPUSD forecasts)

Intermediate
  • A weaker US Dollar tone through November remains the dominant short-term theme for Forex markets in a “risk on” environment.
  • This is being driven by both the Biden Presidential election victory in the US and the positive news from both Pfizer and Moderna from their respective COVID-19 vaccine trials
  • The Euro has rejected recent weakness and resumed the broadly positive tone seen in early November, with EURUSD aiming higher into November.
  • The Pound continues to strengthen with apparent positive progress rumours from EU-UK trade talks (alongside the negative US Dollar tone), with GBPUSD aiming higher in the short- and intermediate-term.

EURUSD day trade outlook: Bias higher with push above 1.1865/70 resistance area

A further rebound Tuesday as seen from late last week now above our flagged 1.1869/70 resistance area up to 1.1894, to reject the negative tone from last week’s setback through supports to 1.1744, to switch risks higher for Wednesday. 

Day trade setup

  • We see an upside bias for 1.1894 and 1.1920; a break here maybe aims for 1.1966.
  • But below 1.1797/93 opens risk down to 1.1744 and possibly 1.1709.

EURUSD intermediate-term outlook

The early November push above key 1.1881 resistance signalled an intermediate-term shift to a bull trend.

  • Upside risks: We see an intermediate-term bull trend to aim for 1.2011, 1.2140 and 1.2556.
  • What changes this? Below 1.1709 shifts the intermediate-term bull trend to neutral; through 1.1601 to an intermediate-term bear trend.
8 Hour EURUSD Chart

GBPUSD day trade outlook: A further rebound, bull tone

A further advance Tuesday as seen since late last week, now above 1.3243/53 resistances to stall at 1.3272, to resume upside forces from the earlier November rally above the key peaks at 1.3177 (to set an intermediate-term bull trend), to keep risks higher for Wednesday. 

Day trade setup

  • We see an upside bias for 1.3272; a break here aims for 1.3313, maybe 1.3359.
  • But below 1.3193 aims for 1.3150 and possibly opens risk down towards 1.3106/1.3092.

GBPUSD intermediate-term outlook

The early November push above 1.3177 signalled an intermediate-term shift to a bull trend.

  • Upside risks: We see an intermediate-term bull trend to aim for 1.3359, 1.3486/1.3515 and maybe 1.3711.
  • What changes this? Below 1.2854 shifts the intermediate-term bull trend straight to an intermediate-term bear trend.
8 Hour GBPUSD Chart

Editor in chief

Steve Miley has 29 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Market Chartist, the Editor-in...continued

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