Two trades to watch: EUR/USD, WTI crude oil

EUR/USD under pressure on covid concerns, PMIs in focus. WTI crude oil consolidates losses ahead of OPEC meeting.

Charts (4)

EUR/USD looks lower on covid concerns, PMIs in focus 

EUR/USD is under pressure amid renewed US Dollar strength after Biden presents his infrastructure plan

Meanwhile a third national lockdown in France and rising covid concerns in Europe are hitting demand for the Euro. 

Europe Manufacturing PMI & US ISM manufacturing PMI in focus as well as US jobless claims 

Where next for EUR/USD? 

EUR/USD is under pressure trading below its 20 & 50 sma on the 4 hour chart and below its descending trendline dating back to the end of February indicating a bearish bias 

The bears have so far struggled to break through 1.17 this week’s low. It could be prudent to wait for a move below this level before placing any aggressive sell bets. Beyond 1.17 the bears could target 1.1610 a support from late September.  

Any move above 1.1740 the sma and horizontal resistance at 1.1760 yesterday’s high could see more bulls jump in. Resistance at 1.18, round number, confluence of the descending trendline and 50 sma and this week’s high which could prove a tough nut to crack. 

Learn more about trading forex


WTI consolidates losses ahead of OPEC meeting 

Crude oil prices are prices are on the rise on Thursday, recouping some of the losses from the previous session ahead of the OPEC meeting today. 

The OPEC+ group are expected to extend output curbs in the face of rising covid cases, tighter lockdown restrictions in some regions, such as Europe and also India & Brazil. 

Yesterday OPEC+ lowered its demand outlook for this year by 300,000 barrels per day 

Where next for WTI crude oil? 

WTI declined 1.7% in the previous session and is consolidating losses is early trade. 

WTI trades below its 50 & 200 sma on the 4 hour chart. It also trades below its descending trendline dating back to the 14 month high struck on March 8 indicating a bearish trend.  

The RSRI is in negative territory indicative of additional losses, although the RSI is attempting to point higher so it could be prudent to wait for confirmation above the 50 sma or below yesterday’s lows. 

Any move lower would need to take out yesterday’s low of 58.85 before the bears look towards 57.24 the March low. A break below here could open the door to a much deeper selloff towards 54.00 

Any recovery in the price would need to overcome resistance at 60.00/60.15 the psychological level and 50 sma. A move beyond here could see 61.00 attacked, the descending trend line resistance and yesterday’s high prior to 62.15 the 200 sma and this week’s high. 

How to start trading oil

More from Trade Ideas


This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit for the complete Risk Disclosure Statement.