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
AUD/USD: Next on the downside comes 0.6500
Further gains in the US Dollar kept the price action in commodities and the risk complex depressed on Tuesday, motivating AUD/USD to come close to the rea of the November low near 0.6500.
EUR/USD pierces 1.06, finds lowest bids in a year
EUR/USD trimmed further into low the side on Tuesday, shedding another third of a percent. Fiber briefly tested below 1.0600 during the day’s market session, and the pair is poised for further losses after a rapid seven-week decline from multi-month highs set just above 1.1200 in September.
Gold struggles to retain the $2,600 mark
Following the early breakdown of the key $2,600 mark, prices of Gold now manages to regain some composure and reclaim the $2,600 level and beyond amidst the persistent move higher in the US Dollar and the rebound in US yields.
Ripple could rally 50% following renewed investor interest
Ripple's XRP rallied nearly 20% on Tuesday, defying the correction seen in Bitcoin and Ethereum as investors seem to be flocking toward the remittance-based token. XRP could rally nearly 50% if it sustains a firm close above the neckline resistance of an inverted head and shoulders pattern.
Five fundamentals: Fallout from the US election, inflation, and a timely speech from Powell stand out Premium
What a week – the US election lived up to their hype, at least when it comes to market volatility. There is no time to rest, with politics, geopolitics, and economic data promising more volatility ahead.
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.