Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
EUR/USD, S&P 500 Grasp on to Support Ahead of Q3, H2 2020 Open

EUR/USD, S&P 500 Grasp on to Support Ahead of Q3, H2 2020 Open

What's on this page

US Dollar, EUR/USD, S&P 500 Talking Points

  • The books are near closed on what’s been a chaotic first-half of 2020.
  • The second-half of the year brings a Presidential Election as a global pandemic continues in the background.
  • This webinar looked at key macro markets ahead of the H2/Q3 open, associating a series of themes that have brought impact to price action in the preceding six months.

Door Opens to H2, 2020

It’s been a climactic first-half of the year and with a highly-contentious Presidential Election on the calendar for November, as the world continues to wrestle with a pandemic, market volatility looks likely to continue.

Strangely – with hindsight it was a rather quiet Q2 for the US Dollar. Q1 did not end that way, however, as the 8.8% rip by the currency in the middle of March has left a mark on long-term charts that could make directional biases of a challenge. That March mayhem went into range-mode in April, and that range held into late-May until sellers took a swing. That bearish run went all the way down to support at 95.86-96.05, after which another, shorter-term range has developed.

US Dollar Eight-Hour Price Chart

US Dollar Eight Hour Price Chart

Chart prepared by James Stanley; USD, DXY on Tradingview

EUR/USD Tests Key Support to Close Book on H1, 2020

EUR/USD opened the year around a key level at 1.1212. This is the 61.8% Fibonacci retracement of the ‘lifetime move’ in the pair. This price is confluent with another Fibonacci level of relevance at 1.1187, as this is the 61.8% retracement of the 2017-2018 major move.

Starts in:
Live now:
Dec 22
( 22:12 GMT )
James Stanley's Tuesday Webinar
Trading Price Action
Register for Webinar
Join Now
Webinar Has Ended

Collectively, this zone has produced a number of inflections; and for the bulk of June trade, it’s helped to set support in the pair. As looked at in today’s webinar, there may be a near-term bearish break in the not-too-distant future; as the increasing frequency of support tests around this zone is coupled with lower-highs that could soon see bears take over.

EUR/USD Two-Hour Price Chart

EURUSD Two Hour Price Chart

Chart prepared by James Stanley; EUR/USD on Tradingview

S&P 500 Bounces from 3k Level, Bullish Continuation Potential

Also looked at in the early-portion of this webinar was the backdrop in US stocks. Stocks put in an amazing recovery in Q2 of this year; but the big question as we stare down the second-half of 2020 trade is whether that can continue.

Building Confidence in Trading
Building Confidence in Trading
Recommended by James Stanley
Building Confidence in Trading
Get My Guide

From the chart, the backdrop for bullish continuation may be open. Recent price action has taken on the form of a falling wedge, and this is based around the support zone around the 3k marker. For bullish US equity strategies, the Nasdaq 100 may be more compelling; while bearish strategies may be of greater interest in the Dow Jones Industrial Average.

S&P 500 Four-Hour Price Chart

S&P 500 Four Hour Price Chart

Chart prepared by James Stanley; SPX500 on Tradingview

--- Written by James Stanley, Strategist for

Contact and follow James on Twitter: @JStanleyFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.