Brad Alexander
FX Large Limited
After the Republican win in the US elections last week, we saw USD strength.
That was followed by weakness after the lowering of Interest Rates.
What next?
Well, after the lowering of Interest Rates, USD continued stronger.
We can see price action on the EURUSD chart as EUR is the weakest currency.
Price action reversed after the Interest rate decision with this hanging man candlestick pattern and a turn of the stochastic oscillator from overbought.
We have to move to the weekly chart to see that we are at a level of support from April and an oversold stochastic oscillator.
We had even more dramatic movements with AUDUSD but we are close to recent support.
The weekly chart on AUDUSD tells a bearish story as well with price action at the lower trend line and at least one technical signal.
We see a similar story on GBPUSD and I encourage you to check all the USD pairs.
Gold as well, had similar price action.
While we are looking at weekly charts, WTI is close to the magical level of support of $66.
Apparently, this bearish move was caused by a selloff based on negative sentiment of Donald Trump’s foreign policies.
That’s all for now.
CFDs and FX are leveraged products and your capital may be at risk.
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.
Recommended Content
Editors’ Picks
USD/JPY remains below 158.00 after Japanese data
Soft US Dollar demand helps the Japanese Yen to trim part of its recent losses, with USD/JPY changing hands around 157.70. Higher than anticipated Tokyo inflation passed unnoticed.
AUD/USD weakens to near 0.6200 amid thin trading
The AUD/USD pair remains on the defensive around 0.6215 during the early Asian session on Friday. The incoming Donald Trump administration is expected to boost growth and lift inflation, supporting the US Dollar (USD). The markets are likely to be quiet ahead of next week’s New Year holiday.
Gold depreciates amid light trading, downside seems limited due to safe-haven demand
Gold edges lower amid thin trading following the Christmas holiday, trading near $2,630 during the Asian session on Friday. However, the safe-haven asset could find upward support as markets anticipate signals regarding the United States economy under the incoming Trump administration and the Fed’s interest rate outlook for 2025.
Floki DAO floats liquidity provisioning for a Floki ETP in Europe
Floki DAO — the organization that manages the memecoin Floki — has proposed allocating a portion of its treasury to an asset manager in a bid to launch an exchange-traded product (ETP) in Europe, allowing institutional investors to gain exposure to the memecoin.
2025 outlook: What is next for developed economies and currencies?
As the door closes in 2024, and while the year feels like it has passed in the blink of an eye, a lot has happened. If I had to summarise it all in four words, it would be: ‘a year of surprises’.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.