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FX.co ★ Trading plan for EUR/USD and GBP/USD on November 10

Trading plan for EUR/USD and GBP/USD on November 10

Dollar has fallen in price early this week, so a rebound could happen any time. Moreover, the pressure was caused by the uncertainty over the results of the US midterm elections, so as soon as it becomes clear that the Democrats are gaining control over the Senate, the dollar will begin to rise actively.

Although the vote count is still ongoing, everything is pointing to the fact that the Democrats will take the Senate, while the Republicans will take the House of Representatives. Previously, many assumed that Republicans will win a crushing victory and gain control of both houses of Congress.

So, the dollar has a high chance of rising today, especially after the release of the October inflation data in the US. But even if consumer price growth is likely to slow from 8.2% to 8.1%, the Fed will continue to raise rates. Firstly because inflation is still extremely high, and secondly because consumer prices should rise by 0.5% m/m. In other words, prices will not only rise, but there may also be an acceleration of growth, which will force the Fed to continue its extremely tight monetary policy.

Inflation (United States):

Trading plan for EUR/USD and GBP/USD on November 10

EUR/USD bounced back after hitting a local high in October. At the moment, the level of 1.0000 serves as a support, relative to which the current pullback has slowed down. If the parity level plays the role of support, then there may be another attempt to break through the October high. Otherwise, short positions will surge in the market.

Trading plan for EUR/USD and GBP/USD on November 10

GBP/USD lost about 200 points and returned below 1.1400, which indicates a change in trading interests. However, there is a chance of rising above 1.1410 today, which will prompt a new wave of growth in the market.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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