Joe Biden Presidency Almost a Certainty US Dollar Levels to Watch EURUSD USDJPY AUDUSD

Joe Biden Presidency Almost a Certainty- US Dollar Levels to Watch: EUR/USD, USD/JPY, AUD/USD

As reports are now suggesting that Pennsylvania and Georgia have flipped from Trump-leading to Biden-leading, it’s becoming more and more apparent that Joe Biden will win the Presidential Election. With the US Dollar tanking over the last few days, perhaps there may be a ‘But the rumor, Sell the fact” play or just plain profit taking ahead of the weekend in USD pairs. Some levels to watch are below:

EUR/USD

On a 60-minute timeframe, EUR/USD has broken out of a symmetrical triangle and is testing the October 21^st highs near 1.1880. A close above would clear the way for a move up to the September 1st highs at 1.2010. Support is now at the downward sloping trendline (red line) from the September 1^st highs near 1.1872 and the trendline from the short-term symmetrical triangle near 1.1825. Note that the RSI is diverging from price, so a pullback may be coming shortly.

Source: Tradingview, City Index

USD/JPY

As we discussed yesterday, some of the Yen pairs may have been ready for a bounce. USD/JPY has held the 161.8% Fibonacci extension from the lows of October 29^th to the election night highs near 103.25. After a false breakdown below the downward sloping trendline (red line) from May, price busted higher out of a very short-term channel and tested a downward sloping trendline from October 21^st. That level, 103.71, now acts as resistance. Above there are the previous lows from October 29^th near 104, then horizontal resistance near 104.20. Support is at the day’s lows of 103.17, but the pair can fall quickly from there towards 102 and the March lows near 101.18.

Source: Tradingview, City Index

AUD/USD

After testing resistance near .7275, AUD/USD pulled back into the resistance area (now support) as the RSI was diverging from price. However, now that the RSI is back in neutral territory, it looks like the pair may be ready for another run higher out of a flag pattern. A strong stock market is good for commodity currencies, so if stocks hold up, so should the Aussie (and Kiwi, which is in breakout territory). The target for the flag pattern is .7390, near the August 31^st highs at .7410. It must close above the flag and horizontal near .7285 on a 60-minute timeframe before it can move to target. If price falls below the .7250 support zone, next support is .7225, then horizontal support near .7150.

Source: Tradingview, City Index

US Dollar pairs may still see some volatility ahead as the election winner is announced and results are contested. Watch the mentioned levels in the short-term for possible areas to “take action”.

From time to time, StoneX Financial Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.

City Index is a trading name of StoneX Financial Pty Ltd.

The material provided herein is general in nature and does not take into account your objectives, financial situation or needs.

While every care has been taken in preparing this material, we do not provide any representation or warranty (express or implied) with respect to its completeness or accuracy. This is not an invitation or an offer to invest nor is it a recommendation to buy or sell investments.

StoneX recommends you to seek independent financial and legal advice before making any financial investment decision. Trading CFDs and FX on margin carries a higher level of risk, and may not be suitable for all investors. The possibility exists that you could lose more than your initial investment further CFD investors do not own or have any rights to the underlying assets.

It is important you consider our Financial Services Guide and Product Disclosure Statement (PDS) available at www.cityindex.com/en-au/terms-and-policies/, before deciding to acquire or hold our products. As a part of our market risk management, we may take the opposite side of your trade. Our Target Market Determination (TMD) is also available at www.cityindex.com/en-au/terms-and-policies/.

StoneX Financial Pty Ltd, Suite 28.01, 264 George Street, Sydney, NSW 2000 (ACN 141 774 727, AFSL 345646) is the CFD issuer and our products are traded off exchange.