US Election Excitement Hitting the US Dollar: EUR/USD, GBP/USD, AUD/USD

Traders may square up positions heading into the results release,

USA (1)

Today is the day some people have been waiting 4 years for:  The US Presidential Election.  Stock traders seem confident about the election and the bid is making its presence felt as the US Dollar is lower on the day.  Make sure to see our full election coverage and follow our live blog this evening for up to the minute analysis and market reaction to the results!

EUR/USD

The EUR/USD held the lows from September 28th yesterday near 1.1610 and have since retraced to the 38.2% Fibonacci retracement level from the October 21st highs to yesterdays lows near 1.1715.  There is also horizonal resistance near this level.  Price has moved to the 50% retracement level near 1.1750, which is mid-range, before the election results are known.  If EUR/USD reverses and moves lower, price can test yesterday’s lows near 1.1620.

Source:  Tradingview, City Index

GBP/USD

GBP/USD put in a false breakdown below horizontal support near 1.2910 and today broke out to the topside of a descending triangle.  The pair retraced has nearly 61.8% of the move from the highs of October 21st to yesterday’s lows near 1.3055. Next resistance area is back at the recent highs near 1.3175! Watch the important psychological area at 1.3000 for support.  Next support is down at the trendline of the descending triangle near 1.2950.  Also, be on the lookout for Brexit headlines which could cause extra volatility in the pair.

 Source:  Tradingview, City Index

AUD/USD

After the RBA was “as expected” earlier, price held the important .7000 level and busted through horizontal resistance near .7100.  AUD/USD is trying to break out above a downward sloping trendline of a descending triangle and horizontal resistance near .7150.  If price does break higher, next resistance is at .7250.  Support is at .7100, then overnight horizontal support near .7070. 

Source:  Tradingview, City Index

Going into the election results this evening,  it’s not a surprise US Dollar pairs are at mid-range or at resistance.  These pairs may not have much more upside as the evening approaches.  Traders may square up positions heading into the results release, if they aren’t already.


Join our live webinars for the latest analysis and trading ideas. Register now

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.

For further details see our full non-independent research disclaimer and quarterly summary.