Intraday Forex Wednesday, December 2 (USDJPY, EURUSD, & etc.) Bets on more easing from the U.S. Fed weighed on the dollar as riskier currencies rose.


Hi everyone. This observation is made around 5:00 UTC today, with 30 minutes time frames. The Resistance and Support Line were constructed according to Fibonacci retrenchment. Any discussion is welcomed.

Asian shares shed early gains from a strong overnight Wall Street lead, as some investors booked profits. Hope for more U.S. economic stimulus and a COVID-19 vaccine kept market sentiment well supported. Oil prices extended losses after a delayed a decision on output cuts.

The dollar stayed near a 2 1/2-year low as investors cautiously eyed developments in talks about further fiscal stimulus from the U.S., while risk currencies held onto gains on improving risk appetite.

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  • The euro soars on the day to 1.2079, fetching to a 2-1/2 year high earlier.​
  • Investors are heavily short on dollars as optimism about promising vaccine trials drives buying of riskier currencies and higher yielding assets outside the U.S.​
  • Hawkish comments from ECB Executive Board member Schnabel also gave EUR/USD a boost when he said the ECB should keep financial conditions at current levels through the rest of the pandemic crisis rather than announcing a grand stimulus package that beats market expectations.​
  • Strength in Eurozone economic data on Tuesday also supported gains in the euro.​
  • The moves, however, may be subdued as ECB could act against a rapid rise of the currency.​
  • On Tuesday, U.S. Treasury Secretary Mnuchin and House of Representatives Speaker Pelosi held stimulus talks for the first time since the election, while a bipartisan group of senators and House members proposed $908 billion worth of coronavirus relief measures.​
  • The Fed meets to set policy on Dec. 15-16.​
Important Levels to Watch for:​
  • Resistance line of 1.21150 and 1.21695.​
  • Support line of 1.19386 and 1.18841.​

  • The greenback held its ground at 104.363 against the safe haven yen, having touched a weekly high overnight at 104.576.​
  • USD/JPY posted moderate gains as COVID-19 vaccine optimism and rally in global equity markets curbed the safe-haven demand for the yen.​
  • The positive moves by dollar, however, were subdued by weaker-than-expected U.S. manufacturing activity data and speculation that the Federal Reserve will act to support the economy before vaccinations become available.​
Important Levels to Watch for Today:​
  • Resistance line of 104.547 and 104.780.​
  • Support line of 103.793 and 104.560.​

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