CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

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

November 6, 2020 11:24 AM

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 21st 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 1st 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 29th 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 21st.  That level, 103.71, now acts as resistance.  Above there are the previous lows from October 29th 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 31st  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”.


StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024