In today’s live trading session, we went over the various scenarios pertaining to the US Election and the US Dollar Index (DXY).
The US Election is four days away and the world as well as the financial markets are anxious to see who wins. Based on our analysis and analysis done by JP Morgan, we believe that if Trump wins, the DXY will show an immediate push to the upside. Alternatively, if Biden wins, we may see a short-term selloff, before the price starts to head higher. Either way, technically and fundamentally, we predict a bullish US Dollar for the rest of 2020.
Based on our bullish bias for the US Dollar, we have devised some promising swing setups for the major currency pairs. There are three that stand out the most to us. They are all short setups for EURUSD, AUDUSD, and XAUUSD (Gold). All three have price action that mirrors each other and would be the pairs that deteriorate the most against the US Dollar. After the election, we will make adjustments to our bias, if need be.
Not only do we have the election next week, but we also have the Non-Farm Payroll release. You can see why it may not be the best week to trade, or at least trade actively. We will be sure to not force any trades next week until we know market conditions are safe to trade in. Have a great weekend!
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