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EURUSD 1 HOUR CHART – ON HOLD
EURUSD in a holding pattern awaiting the results of the US election.
If trading, stick to short-term charts and day trade as even if you call the election right, you could be caught out by an early vote headline.
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Current range is around 1.0870-1.0915, the bottom end is the top of the gap.NAS100 DAILY CHART – BUCKLE UP
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NAS100 closing around the 20K level, which is the obvious bias setter once the dust settles on the US election. Expect alot of chop as election headlines come out until a clear winner emerges and the make up of Congress is known.Looking at the chart, risk is tilted down but to suggest the top is in, the trendline would need to be taken out.
For trading in general, expect false starts on news headlines and as noted, how markets end the week will be more important that what goes on in between.
AUDUSD 1 HOUR – WILL IT FILL THE GAP?
Brief break of .6615 not following through (.6646-61 above it)
Opening week gap to ,6559
Amazing Trader Directional Indicator (2 blue lines) shows potential for a top but only a break of .6585 would confirm and put the gap in play.
Key event risk: RBA decision… see PREVIEW
US500 DAILY CHART -ELECTION DAY IS FINALLY HERE
Once the dust settles, I would ask the question which is better for the stock market, Trump or Harris?
This is not as clear cut as it appears, as Trump comes with a risk/reward while Harris seems more of the status quo, assuming there is a divided Congress.
In US500, a firm break of 5700-5800 will dictate the eventual tone. Support in the 5600s, key resistance is at the record high.
Otherwise, hold on to your seat belts in a market where how it ends the week may be more important than what happens in between,
BTCUSD DAILY CHART – BRACING FOR THE US ELECTION
BTCUSD may be setup to have the most volatility given Trump’s support of cryptos while Harris has not made it an issue.
So, let’s pick a range and ask whether 60K or 75K (7500 pips from the current price) are safe in any knee jerk reaction to the election result.
Going strictly by the charts, key resistance is the record 73840 high and support 65233 and 58893.
USDMXN WEEKLY CHART – Holding its Breath
The Mexican Peso is seen as one of the currencies that could see a sharp reaction either way following the US election. The other, to a lesser extent is the CAD.
Why?
If trump gets elected with a Republican sweep, he could look alter USMCA, the United States-Mexico-Canada (free trade) Agreement that started in July 2020 in order to place tariffs on goods from both partner countries. Harris is seen as maintaining the status quo. Note USMCA replaced the North American Free Trade Agreement (NAFTA) gthat exited from 1994-2020.
So you can see why technicals matter little until the dust settles on the US election result, especially the MXN. We will also see the extent to which a rik of a Trump presidency has been factored into weakness in each of these currencies.
