ZuluTrade Blog

Daily FX Market Outlook - Stimulus in focus

Market View | Thursday, October 22, 2020 5:01 PM GMT

Heated negotiations continue between the Republicans and Democrats over the impending COVID-19 stimulus package. Nancy Pelosi, the US House Speaker,  believes despite negotiations having “come a long way”, the final stimulus package will not be approved before the presidential election.

This will likely be a contentious topic during the impending second debate between Trump and Biden, happening later today.  We expect ongoing nervousness from the US stock market, also keeping in mind Trump still has not committed to a peaceful transfer of power if he loses the November elections. 

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Reviewing today’s agenda,  the weekly US Jobless Claims were lower than expected, rising by 787k last week. UK Business Optimism has minor-changed to 0 from -1, while Factory Orders increased by 14 points to -34 which is the highest level since March. 

Regarding COVID-19, global infections have reached 41mil, while deaths have now risen above 1.1mil. Οnce again, Europe has become the focus of the pandemic, with one country after another implementing additional measures to reduce the spread of the virus.


The fiber is currently testing 20EMA and still maintains its bullish bias in 240min. If the pair violates 1.1871 to the upside, it will accelerate towards previous highs.



The cable failed to breakout the 61.8% Fibonacci level which still remains a solid resistance. As long as the pair remains above 50%, then it still bullish. On the other hand, falling below 50%, it may move towards the 38.2% level.


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The pair is potentially forming a bearish flag and the 78.6% Fibonacci level is critical as support. 



Aussie is moving between 20EMA and 50SMA which can be considered as a positive indication for the bulls. However, if the pair closes below 20EMA, it will negate the bullish scenario.


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Checking the ZuluTrade’s Traders Sentiment, the community is currently bullish on GBPJPY while neutral with the rest of the pairs.


The views expressed do not constitute investment or any other advice /recommendation /suggestion and are subject to change. Reliance upon information in this material is at the sole discretion of the reader. Opinions expressed in the report do not represent the opinion of ZuluTrade Social Trading Platform and do not constitute an offer or invitation to anyone to invest or trade.

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