Two trades to watch: EUR/USD with Fed in focus, Dixons Carphone H1 results
Fiona Cincotta December 16, 2020 7:39 AM
EUR/USD eyes YTD high 1.2175 ahead of Fed rate decision Dixons Carphone reports strong rise in H1 profits, 120p draws into focus
EUR/USD: will Fed & Congress help pair break 1.2175?
• Euro could ignore gloomy Eurozone PMIs
• The FOMC is the key risk event today, US retail sales also in focus
• Fed expected to stay on the side lines waiting for developments from vaccine roll out & Congress over stimulus
• Would need to cast doubt over easy policy for longer to bounce the USD
Learn more about forex trading opportunities.
Dixons Carphone continues rally as profits rise
• Electrical retailer reported strong rise in H1 profits with strong online performance
• Pre-tax profit of £45 million vs £86 million loss same period last year
• Trading strong 6 weeks to 12 Dec LFL sales +16%
Dixons Carphone has rallied over 100% since its Mid-March lows. After trending lower across June and July, a series of higher high and higher lows has been in place since early August. After hitting an 8 month high of 121p in November the price has eased back finding support on the ascending trend line at 101p last week.
The price trades comfortably above 100 day sma and is testing the 50 sma. Meanwhile the RSI which had be sloping lower is now pointing northwards.
A move above 50 sma could see Carphone Dixons test horizontal resistance at 110p prior to 121p (Nov high) and 130p. Meanwhile a move below the 50 sma could see the share price test the ascending trend linee support at 102p, prior to 100 sma support at 97p.
Learn more about equity trading opportunities.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.