US election drives USD and indices – Forex trading on Gold on strong USD, Nasdaq at all-time high [Video]

Brad Alexander FX Large Limited

We have been saying for weeks that a Democratic win will drive USD lower, well look what happened.

As a major shock to most of the planet, the Republicans under Donald Trump won the election.

So, all USD pairs flew stronger but will they keep going?

From the technical side, we saw a 255 pip drop in EURUSD and a pullback signalled by the stochastic oscillator.

The same USD strength was seen in USDCHF.

And with gold falling from all-time highs to the mid-$2600s.

Last time we told you to watch the NASDAQ and wait for the MACD signal line to break out of the histogram for a possible reversal.

Meanwhile, opposing forces drove price action into a double bottom, then we had the election.

This is what the markets call The Trump Trade driving the NASDAQ to an all-time high.

In our last video we saw this second cup and handle pattern and, sure enough, it went bullish.

Price action was disrupted by the US elections but, if you had your stop loss below the handle, you were protected.

On the 4-hour chart on WTI, watch the stochastic oscillator which is overbought.

Regarding the economic calendar, the central banks will consider a Trump presidency as inflationary.

Therefore, the question is, will the Bank of England and the US Federal Reserve lower Interest Rates as expected?

Author

Brad Alexander

FX Large Limited

Brad became fascinated with the Currency Markets from a young age and researched fundamental analysis.

EUR/USD flirts with weekly lows near 1.1770

EUR/USD now comes under further selling pressure, breaking below the 1.1800 support to challenge the area of weekly throughs near 1.1770 on Thursday. The pair’s decline comes in response to marked gains in the US Dollar amid steady geopolitical tensions. Ealier in the day, the ECB’s Lagarde delivered cautious remarks, although the currency remained apathetic.

GBP/USD threatens the 200-day SMA near 1.3440

GBP/USD rapidly leaves behind Wednesday’s strong advance, coming under heavy pressure and retesting the 1.3440 zone, where the critical 200-day SMA is located. Cable’s deep pullback follows the strong gains in the Greenback, while investors continue to pencil in a potential BoE rate cut in March.

Gold trims gains, slips back to around $5,170

Gold is now facing some downside pressure, hovering around the $5,170 region on Thursday. The yellow metal surrenders part of its earlier gains on the back of the resurgence of the buying interest in the Greenback. In the meantime, geopolitical tensions in the Middle East continue to limit the downside potential for now.