EUR/USD: market situation after US elections still uncertain


On Thursday the euro/dollar closed slightly down. By the end of the day the euro cheapened 19 points to 1.0890. The buyers didn’t manage to bounce from the 337th degree. The head of the Saint Louis Fed, Bullard, announced that the US Fed is planning to raise its base rate by 0.25% in December. Gold fell by 40 USD per ounce to $1252.39 and the euro fell to 1.0865 against the dollar.

Market expectations:

The situation has changed in Asia. The euro/dollar corrected to 1.0923. At the time of writing this analysis the euro is going for 1.0919. I am continuing to consider a correctional movement for the euro/dollar. I reckon that, after the euro’s weakening following the US elections, the flat will be extensive (more than just a week). In an ideal world we would like to see the buyers coming back to 1.0943.

Day’s News (GMT+3):

10:00, German definitive October CPI and wholesale price index;

12:30, UK September construction;

17:00, FOMC member Fischer to speak;

18:00, US preliminary consumer sentiment and inflation expectations from Michigan university for November;

18:50, BoC’s Poloz to speak;

21:00, US active drilling rigs according to Baker Hughes;

Day off in Canada for Armistice Day.

Technical Analysis:

Intraday forecast: minimum: 1.0876 (current Asian), maximum: 1.0945, close: 1.0929.

Euro/dollar rate on the 30-minute period. Source: TradingView

Today my forecast is on a 30-minute graph. Take a look at how the price has left the downward facing channel. If the price would’ve broken from 1.0900/05 then my scenario would’ve been for a fall of the euro to 1.0831. As it is I’m waiting for a restoral of the price to 1.0943. From trade opening in Europe the price could return to 1.0980/95. The break I the lower limit of the upward channel from 1.0865 will cancel any growth scenario.

Source:: EUR/USD: market situation after US elections still uncertain

Won't your trader friends like this?
About the Author
Alpari was founded in 1998 and is one of the world’s leading Forex brokers, offering clients a full package of the most modern financial instruments and technological solutions for online trading and investment. According to data from Finance Magnates, Alpari has been one of the largest Forex brokers in the world for a number of years. The trading turnover of the Alpari companies in 2014 was 2.5 trillion USD. Today Alpari is the world’s largest MetaTrader 4 Forex broker. The first half of 2015 saw company branches offering their services to over one million clients from over 150 countries in the world. Alpari clients have access to over 50 currency pairs and an extensive range of other instruments. The company offers the use of three trading platforms for computer and mobile applications for use with iOS and Android. Alpari is a member of international organizations such as The Financial Commission (Hong Kong) and CRFIN (Russia). Bonuses: the Alpari Bonus Program was launched in 2014 and allows clients to independently change their conditions for working on the financial market: reduce commission, save money on swaps, improve conversion rates and much more. Read More about Alpari HERE or you can visit their website direct by CLICKING HERE..

Related Posts

Leave a Reply