Trading Opportunities Headed Into US Election This Week
- Trading analysis for the forthcoming US-election week from expert Nial Fuller.
GBP/USD – sterling/dollar pushing higher
The GBP/USD rallied aggressively last week, breaking and closing well above 1.2329 resistance on major news out of the UK regarding ‘Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term’ requiring a vote in Parliament. We updated our previous bias on the GBP/USD last week, to a neutral to mildly bullish bias. Short-covering has commenced and we could see a vacuum back up to key resistance levels. We see any weakness in the near-term as a potential buying opportunity, ideally on a 1 hour, 4 hour or daily chart price action signal, targeting resistance up near 1.2860.
Crude oil - bears stay in control
Crude oil has been very weak in recent weeks, selling off with ease. This market could collapse if Trump wins the U.S. presidential election. This chart is very bearish after failing at 51.60 resistance. Looking to be a seller on strength is the likely play here this week but expect Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term due to elections so be careful and wait for clear price action signals before taking any positions.
Gold – spot gold surges higher, enters key resistance zone
Gold has surged higher in recent weeks and is now within a key resistance zone that we have talked about recently, between 1300 – 1310. The best move is to wait and see what develops in the wake of the election results on Tuesday. We could see price fall from here or break higher through this resistance. We will wait for price action to develop and ideally will wait for the election results before committing to one side of this market.
S&P500 – S&P Index trending lower ahead of U.S. election
The S&P500 continued to trend lower last week, breaking and close under 2105.00 key support, which has now flipped to resistance. We see the potential for high volatility this week ahead of the U.S. election and potentially during it. Traders should wait and see what develops after the election results roll in on Tuesday evening U.S. time. For now, we are bearish biased and will be watching for potential selling opportunities on any strength.
This article was written by Nial Fuller. Nial is a highly regarded professional trader and author. He is the founder of Learn To Trade The Market, the worlds foremost trading education resource. To learn more, visit www.LearnToTradeTheMarket.com
GBP/USD – sterling/dollar pushing higher
The GBP/USD rallied aggressively last week, breaking and closing well above 1.2329 resistance on major news out of the UK regarding ‘Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term’ requiring a vote in Parliament. We updated our previous bias on the GBP/USD last week, to a neutral to mildly bullish bias. Short-covering has commenced and we could see a vacuum back up to key resistance levels. We see any weakness in the near-term as a potential buying opportunity, ideally on a 1 hour, 4 hour or daily chart price action signal, targeting resistance up near 1.2860.
Crude oil - bears stay in control
Crude oil has been very weak in recent weeks, selling off with ease. This market could collapse if Trump wins the U.S. presidential election. This chart is very bearish after failing at 51.60 resistance. Looking to be a seller on strength is the likely play here this week but expect Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term due to elections so be careful and wait for clear price action signals before taking any positions.
Gold – spot gold surges higher, enters key resistance zone
Gold has surged higher in recent weeks and is now within a key resistance zone that we have talked about recently, between 1300 – 1310. The best move is to wait and see what develops in the wake of the election results on Tuesday. We could see price fall from here or break higher through this resistance. We will wait for price action to develop and ideally will wait for the election results before committing to one side of this market.
S&P500 – S&P Index trending lower ahead of U.S. election
The S&P500 continued to trend lower last week, breaking and close under 2105.00 key support, which has now flipped to resistance. We see the potential for high volatility this week ahead of the U.S. election and potentially during it. Traders should wait and see what develops after the election results roll in on Tuesday evening U.S. time. For now, we are bearish biased and will be watching for potential selling opportunities on any strength.
This article was written by Nial Fuller. Nial is a highly regarded professional trader and author. He is the founder of Learn To Trade The Market, the worlds foremost trading education resource. To learn more, visit www.LearnToTradeTheMarket.com