The strengthening of the US Dollar is driven by the erased optimism of the vaccine discovery by Johnson & Johnson. Risk appetite weakened after Johnson & Johnson announced on Tuesday that they are halting clinical trials of their coronavirus vaccine, and Eli Lilly and Co also stated that they are stopping coronavirus antibody treatments.

The US pharmaceutical company temporarily halted its COVID-19 vaccine trials after some of its volunteers developed a mysterious illness. Investor interest in the US dollar also increased after US House of Representatives Speaker Nancy Pelosi said that the stimulus package offered by President Donald Trump fell short of actual needs.

Meanwhile, an optimistic report from the IMF has dimmed stimulus expectations. The IMF assessed that the global economy is not doing as badly as previously estimated. The strongest evidence is presented by China whose economic data is on average better than expected.

Economic data to be released today:

  1. Wednesday morning at 6:30 WIB, Westpac Banking Corporation will provide a report on changes in consumer confidence levels in the Australian economy for the period of October, if the data is released lower than expected then AUDUSD has the potential to weaken. (data released lower than the previous level).
  2. At 11:30 WIB, the Japanese Ministry of Economy, Trade and Industry will report revised Japanese industrial production data for the August period. Weakening industrial activity in Japan has the potential to trigger a weakening of the Japanese Yen, which means an increase in the USDJPY chart.
  3. Next, at 16:00 WIB Eurostat will report industrial production data for the euro area. If this data is reported lower than expected, EURUSD has the potential to weaken.
  4. Evening At 19:30 WIB the US Bureau of Labor Statistics will report data on changes in the prices of goods sold by manufacturers. This data is one of the indicators of inflation in the US, if the data is reported lower than expected, it means that demand for goods is still weak. Then the US dollar has the potential to weaken and the price of gold has the opportunity to strengthen, and vice versa.

Daily Pick

The prediction for today on the EURUSD pair is that it is expected to decline, and the recommended OP is to SELL at the level of 1.17300 with a target profit of 10-20 points and a stop loss of 5-10 points.

  • SELL at level 1,17300
  • TP 1 = 1,17200 (10 POINT)
  • TP 2 = 1,17100 (20 POINT)
  • SL 1 = 1,1735 (5 POINT)
  • SL 2 = 1,1740 (10 POINT)

Always prioritize Money Management and Risk Management.

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