Forex Signals Brief for Nov 6: Mid-Term Elections in Focus
Rowan Crosby • 2 min read
At this point in time, analysts aren’t really all that sure just what the result of the US midterm election will mean for markets.
Currently, it looks like the Democrats will likely regain control of the House, while Republicans will likely keep their lead in the Senate.
The Republicans under President Donald Trump, have been pushing their pro-business agenda, lead by wide-ranging tax cuts. As such they are considered to be the better bet from an economic perspective.
However, the experts are mixed as to whether the end result will have any meaningful impact on the economy. Given the strong result we saw from the US jobs market last Friday, they might just be the case.
Regardless, until the results filter through at the end of the US session, we likely won’t see too much action on world markets. If something big happens either way, then watch out.
Forex Signal Update
The FX Leaders Team, found 2 winners from 4 signals yesterday. Gold was a busy trade for us, as the uncertainty around the election grows.
NIKKEI225 – The Japanese Nikkei, is now holding above the 22,000 level so keep looking for a potential long entry here.
AUD/USD – Active Signal
The AUD/USD ran up strongly last week and got as high as 0.7250. While the short-sharp run might have been overdone, a short signal looks to be a good play in what is a mean-reversion type trade ahead of the RBA.
EUR/USD – Active Signal
The EUR/USD also found a bid late last week as the USD fell away from its highs. We feel this is a short-lived rally with plenty of resistance overhead for protection.
It’s been a decent start to the trading week for the cryptocurrencies as we near what is an important fundamental moment in their history.
A decision by the SEC is due on nine rejected Crypto ETFs. If an EFT was to get over the line, then it would open the door for institutional money to start flowing in, which could be a big catalyst for another price spike.
For now, BTC is still at the $6,400 level and the main levels of interest are $6,800 to the upside and $6,150 to the downside.