TD Research looks to buy EUR/USD on dips towards 1.17, while staying short AUD/NZD targeting 1.0730, and short EUR/GBP targeting 0.8800 as their ToTW trades for this week.
"Our election tracker shows that while the polls give Biden a nice edge, the betting markets are shifting in Trump's favor. The race is likely tighter than many expect. A shift in the political narrative would likely disrupt stale market positioning. While that would be a positive USD development in the very shortrun, it would also offer better levels to sell for a deeper setback," TD notes.
"That could reinforce EURUSD resistance at 1.20 but would offer better levels to buy on the dip back towards 1.17. For now, we're positioned short AUDNZD and EURGBP as proxies for this setup," TD adds.