Dear Clients,
Tradeo ceased offering trading services last year in May. Trading and ancillary will not recommence, and the brand/platform will be permanently discontinued.

For the clients with remaining balances, kindly send a withdrawal request through your login or via chat or email. If there are any queries or concerns relating to your account or any other matter, please email us at [email protected]


21 September 2020

US dollar sags amid fiscal overhang, mounting coronavirus risks

The US dollar remained on the defensive starting out a fresh week this Monday, extending last week’s softness, courtesy of the gridlock on the US fiscal stimulus. The US lawmakers are still nowhere near agreeing on new relief aid, which could likely thwart the nascent economic recovery.

AUD/USD was the top gainer in Asia and regained 0.7300, helped by the upbeat comments from Australian Prime Minister (PM) Scott Morrison. He predicts a job bounce-back as Victoria prepares to reopen. The kiwi also followed suit and headed back towards 0.6800 after NZ PM Ardern lowered the country-wide alert outside Auckland to level 1. The yen advanced on broad risk-aversion against the US dollar, with USD/JPY downed to near two-month lows of 104.26.

EUR/USD jumped back onto 1.1850, with the 1.1900 level back in sight, as the common currency shrugged-off concerns over the coronavirus resurgence in Europe. Fresh restrictions were imposed in Greece and Denmark last Friday. Spain and France mulled local lockdowns amid a spike in infections. Among other news, the European Central Bank (ECB) launched a review of its pandemic bond-buying program (PEPP), as cited by the Financial Times (FT).

GBP/USD stood resilient above 1.2950, despite the increasing odds of a nationwide lockdown in the UK. Health Minister Hancock said that the country is at a “tipping point.” Chancellor Sunak may extend business support loans. Optimism over a Brexit deal, courtesy of European Commission President Ursula von der Leyen’s upbeat comments, continued to bode well for the pound.

Gold traded on the front foot above $1950 amid the dollar weakness, ahead of the Fed Chairman Jerome Powell’s speech. Oil prices returned to the red despite the US storm-led production halt. WTI posted small losses to test the $41 mark.

EUR/USD: A break above 1.1880 targets 1.1905

Daily Analysis

EURUSD topped exactly at 3 week trend line resistance at 1.1865/75 so we can assume a break above 1.1880 targets 1.1905/10, perhaps as far as 1.1940/50.

Shorts at resistance at 1.1865/75 worked on the slide to our target of 1.1845/35, perhaps we can reach as far as 1.1800/90. We should have some support at 1.1755/65 but below here retests last week’s low at 1.1740/35.

AUD/USD: A break below 0.7270 risks a slide to 0.7250

Daily Analysis

AUDUSD outlook is unclear in the sideways trend. First support area is at 7300/7280 (which held on Friday). A break below 7270 risks a slide to 7250/40, perhaps as far as 7220/10.

Holding above 7300 allows a recovery to 7330/40 (we topped exactly here on Thursday & Friday), perhaps as far as 7365/75 before a retest of the September high at 7410/13.

Legal disclaimer: The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. UR Trade Fix Ltd accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. The analysis does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it. Past performance does not constitute a reliable indicator of future results and future forecasts do not constitute a reliable indicator of future performance.

It has not been prepared in accordance with legal requirements designed to promote the independence of research, and as such it is considered to be marketing communication. Although we are not specifically constrained from dealing ahead of the publication of our research, we do not seek to take advantage of it before we provide it to our clients. We aim to establish, maintain and operate effective organizational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. We operate a policy of independence, which requires our employees to act in our clients’ best interests when providing our services.