Markets digest a Trump victory

10 November, 2016

The FX, equity and bond markets were volatile yesterday with a risk off sentiment prevailing on the news of a Trump victory. However, after the initial euphoria faded, the US equity markets in particular pared losses to close the day with gains. As the US election dust settles, the main question on traders' minds is the prospects of rate hike in December. On the economic front, the economic calendar is fairly quiet with only the weekly jobless claims coming up later today.

EURUSD Daily Analysis

EURUSD (1.0941): EURUSD was volatile yesterday and by the closing period, the euro was on its way to post a decline. Price closed at 1.0909 but the price action shows a higher low being formed here. A bounce to the upside could signal another attempt to breakout higher. Reistance at 1.1143 - 1.1100 will be likely challenged once again. Alternately, a break down below 1.10900 support could however trigger further declines in EURUSD with price likely to follow through to the downside towards 1.0600. On the daily chart, the current higher low is being validated by a higher low in the Stochastics, but with a bullish divergence that confirms the potential for a retest back to 1.1100 - 1.1143.

GBPUSD Daily Analysis

GBPUSD (1.2425): GBPUSD has been trading sideways near the 1.2500 - 1.2400 price levels. However, the British pound could be seen posting a short term decline towards 1.2250 - 1.2245 support level which is also confirmed by the bearish divergence on the Stochastics oscillator. In the near term, GBPUSD could remain range bound above 1.2400, but as long as 1.2500 resistance is not challenged, the bias remains to the downside. Look for a break down below 1.2400 which will confirm the breakdown towards 1.2250.

NZDUSD Daily Analysis

NZDUSD (0.7260): The New Zealand dollar fell sharply yesterday, but only after the RBNZ cut the OCR by 25bps. The kiwi fell to 0.7300 - 0.7325 minor support level which is likely to offer a short term support. A break down below this level will put the kiwi dollar on course for further declines with the right shoulder, of the head and shoulders pattern being established. Below 0.7300 - 0.7325, the next support which will be challenged will be the neckline support around 0.7100 region. Expect further declines down to 0.6900 on a break down below the neckline support. Alternately, if price posts a reversal at the minor support level, the recent high near 0.7360 could be challenged and puts the head and shoulders pattern at risk of invalidation.

Source link  
Japan's Q2 GDP rebounds by 3.0%

The latest revised GDP numbers from Japan showed that the economy advanced faster than previously expected. The data on the final reading...

Dollar continues to slide

The greenback continued to weaken against some of the major currencies yesterday amid a quiet trading day...

Dollar looks to a new week

The US dollar index will be looking to a fresh week with the possibility of a rebound following last week's sharp declines..

US dollar rebounds as investor nerves cool

The US dollar managed to stem the strong declines after developments from Washington...

EURUSD unstoppable at a 6-month high

The euro surged ahead to a fresh 6-month high earlier this morning as the price was seen tradingþ...

Will UK's wages catch up?

The US dollar extended declines strongly for another day as economic data...

US dollar stays subdued

The latest monthly manufacturing activity report released by the New York Fed yesterday...

US dollar slips on soft inflation figure

The US dollar fell sharply on Friday after data showed that consumer price index rose 0.2%...

US dollar looking weaker

Economic data from the US continued to remain robust with the initial jobless claims declining to 236,000 for the week...

In the past 24 hours Bitcoin has lost -1.25% and reached $6456.75348959. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has gained 0.6352% and is now at $1.1587. Start trading and making money on Forex today.

In the past 7 days Ethereum has gained 3.13% and is now at $203.685637546. Have the most popular cryptocurrencies compared online 24/7.

Top Brokers offering Forex Market Analysis

Forex Currencies Forecasts

Top 10 Forex Brokers 2018

# Broker Review
6FIBO GroupFIBO Group84%