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Nov 9, 2020, 11:44 AM GMT

Range-Trading Opportunities Emerging on the Overbought EURUSD

The most popular currency pair in the world has undergone through several quite turbulent and eventful days recently. Joe Biden's victory in the US Presidential Race was undoubtedly the most fundamentally significant development from last week, which is bound to exert long-lasting impact on the pair. The effect of the new President-elect soothed the stirred stock market but many questions remain uncertain.

Donald Trump's earlier decision to postpone the fiscal stimulus talks still poses a significant threat for the tentative recovery in the country, and not even Friday's better-than-expected Non-Farm Payrolls data was able to offset this adverse impact.

As regards monetary policy, both the ECB and the FED decided to remain vigilant in November without making any drastic changes to their stances at the current time. In the two Bank's statements, however, it was alluded to likely adjustments in December as new data comes in. The expectations for further monetary interventions towards the end of the year, when liquidity typically falls during the festive period, looks poised to cause more volatility outbursts for the EURUSD.

Profit & Loss
Short Term Long Term Net % Gains
+ - + -
62 PIPS 0 0 30 PIPS
Short Term
+ -
62 PIPS 0
Long Term
+ -
0 30 PIPS
Net % Gains

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