In today’s live trading session, we went over the ongoing presidential election and the reactions that have occurred in the Forex market.
Unfortunately, a winner of the US election has not been crowned yet. It is still a tight race between Donald Trump and Joe Biden. Yesterday, Trump had most of the momentum and it was apparent in the markets. The US Dollar was able to surge back to this week’s high of 94.30. However, things shifted quickly after midnight. Joe Biden gained momentum, which consequently led to the Dollar coming back down to yesterday’s lows.
Based on the continued selling of the Dollar, we believe that markets are forecasting a Biden win. This will translate to possible short term long opportunities for the majors. There are three pairs which we have our eyes on. They are EURUSD, AUDUSD, and XAUUSD (Gold). We believe all three showcase promising buy setups if price can validate our entry criteria.
It is still uncertain whether a winner will be crowned today, tomorrow, or even next week. Based on the rapid movements seen in DXY thus far, we believe it’s prudent that we all sit on our hands until this is all over. We also have the Non-Farm Payroll release this Friday, so our hands are tied this week. As always, be safe and trade responsibly!
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- Read yesterday’s breakdown: Forex US Election Prediction and Analysis
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