Electoral College

Morning Brief, Nov 6 – Top Forex Trade Setups, US Midterm Elections on Radar!

Posted Tuesday, November 6, 2018 by
Arslan Butt • 2 min read
  • Dollar held steady against most of its major peers on stronger labor market figures.
  • RBA leaves the monetary policy unchanged, keeping the interest rate at 1.50%.
  • US Midterm elections share the stage, causing a thin trading volume and volatility in the market.
  • Quick trade setups in the EUR/USD & AUD/USD today.

On Tuesday, the dollar remains unchanged against most of its major peers despite the uncertainty triggered by the midterm elections. Actually, the surprising non-farm payroll figures are keeping the US dollar supported ahead of FOMC meeting and elections.

Congressional Elections – Today, the US voters will elect all 435 members to the US House of Representatives, and 34 members to the Senate. The outcome will likely be projected before the official vote count is completed, based on early vote counts and exit polling. Current polling implies that the Democrats will be able to obtain control of the House of Representatives, with the Senate expected to remain under Republican control. Let’s see what comes out…

EUR/USD – Dollar Steady Ahead of Elections

On the daily timeframe, the single currency Euro consolidates in a descending triangle against the dollar. The triangle pattern extends a strong support to the EUR/USD above $1.1335. While on the upper side, the resistance prevails at $1.1450. Today, the violation of $1.1450 can lead the EUR/USD towards $1.1600.

On the other hand, the pair may remain in selling below $1.1450 until $1.1350 and $1.1315.

Daily Technical Levels
Support    Resistance
1.1366        1.1436
1.1325        1.1465
1.1255        1.1535
Key Trading Level: 1.1395

EUR/USD – Market Sentiment

Weekly – Strong Sell
Daily – Sell
Hourly – Buy

EUR/USD – Trade Plan
The idea is to stay bullish above $1.1370 with a stop loss below $1.1350 and take profit at $1.1435 and $1.1450.

AUD/USD – RBA Leaves the Rate Unchanged

The Reserve Bank of Australia leaves the interest rate on hold at 1.50% in the wake of falling house prices and continued low inflation. That keeps rates at a record low and reaches to 25, the record amount of meetings without a move.

On the hourly chart, the AUD/USD has come out of the bearish channel which was keeping the pair in a tight range of 0.7045 – 0.7190. Thing is, the AUD/USD closed outside the bearish channel and most importantly it’s a bullish engulfing pattern. It shows a strong bullish sentiment of traders. Therefore the continuation of a bullish trend may lead AUD/USD towards 0.7285 and 0.7400 today.

Daily Technical Levels
Support       Resistance
0.7192          0.7224
0.7173         0.7237
0.714           0.727
Key Trading Level: 0.7205

AUD/USD – Market Sentiment
Weekly – Strong Buy
Daily – Strong Buy
Hourly – Buy

AUD/USD – Trade Plan
The idea is to stay bullish above $0.7205 with a stop below $0.7185 and a take profit at $0.7255.

Good luck!

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