The global market has experienced a volatile trading week with the fear of disease and the light of strong economic stimulus packages. However, the light from the government's money injection is quite weak. The US economy has received very negative information, even very badly. America's claim for unemployment benefits more than doubled than forecast with more than 3 million records. In addition to the rapid rise in new infections in the US, the number of unemployed in the country will increase as businesses close to prevent epidemics.
At the same time, the situation in the EU is not much better when the PMI figures on service production are lower than 50 and lower than the previous month. However, the Euro has suddenly recovered against most major currencies in the past week, a sign that EURUSD will continue to rise this week.
This week, Eurozone will publish important data on, inflation, unemployment and retail data, as well as German inflation figures. The market this week will also be dominated by the reaction of the central banks and the government to the spread of Covid-19. Like the Fed, the European Central Bank has responded strongly to the risk of an economic slowdown, essentially paving the way for unlimited pumping.
Technically, EURUSD created a short-term upward trend after rebounding from a low of 1.0635. Currently this pair forms the Demand zone at 1.095-1.10 on the H4 chart. It is expected that EURUSD will return to retest this area before making further upward momentum towards 1,126 and higher at 1,134. If the Demand zone breaks 1.095-1.10, it is likely that EURUSD will return to the Demand zone on the daily chart at 1.07.
The uptrend will be the main trend of the EURUSD currency pair this week.
Stop loss 1,094
Take profit 1.1223
Recommendation: This is just a Trading Idea. For more accurate analysis, you should incorporate other indicators that you have mastered. In particular, always focus on capital management methods to prevent any possible market situation.
Author: Nguyen Chi Thanh
PTKT's partner FX24
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