Brad Alexander
FX Large Limited
We have been showing you some successful gap trading opportunities and USD has opened weaker today with a gap.
We told you a few weeks ago that a Democrat win in the US general election tomorrow will mean a weaker USD.
That is what we are seeing here with polls leaning toward Democrats now.
You will find this on all USD pairs but be careful.
At least wait for the stochastic oscillator to rise to overbought and turn over.
If not, the election will drive USD and the indices.
Speaking of economic news, we have lots in the calendar this week with Interest Rate decisions from Australia, the UK and the US where we expect a fall in rates from both central banks.
We have Employment news from New Zealand, the United States, and Canada.
A while ago we spotted this Cup and Handle pattern on WTI but it was broken by this gap after Middle East news.
The gap was filled and we see another Cup and Handle pattern.
This is usually a bullish pattern so keep an eye on your technicals and watch to see if price action breaks these levels of resistance.
We see a pullback from the slide in US Indices since Hallowe’en.
Technically, let’s keep an eye on MACD as if we see the signal line passing out of the histogram, this may indicate a reversal to the upside.
While we may offer market commentary based on fundamental or technical analysis, we do not offer trading advice and cannot be held liable for any decisions taken by viewers and readers of our material.
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Editors’ Picks
EUR/USD treads water just above 1.0400 post-US data
Another sign of the good health of the US economy came in response to firm flash US Manufacturing and Services PMIs, which in turn reinforced further the already strong performance of the US Dollar, relegating EUR/USD to the 1.0400 neighbourhood on Friday.
GBP/USD remains depressed near 1.2520 on stronger Dollar
Poor results from the UK docket kept the British pound on the back foot on Thursday, hovering around the low-1.2500s in a context of generalized weakness in the risk-linked galaxy vs. another outstanding day in the Greenback.
Gold keeps the bid bias unchanged near $2,700
Persistent safe haven demand continues to prop up the march north in Gold prices so far on Friday, hitting new two-week tops past the key $2,700 mark per troy ounce despite extra strength in the Greenback and mixed US yields.
Geopolitics back on the radar
Rising tensions between Russia and Ukraine caused renewed unease in the markets this week. Putin signed an amendment to Russian nuclear doctrine, which allows Russia to use nuclear weapons for retaliating against strikes carried out with conventional weapons.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
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