Special Note: With the US election happening on Tuesday Nov. 8th, volatility could increase leading up to the election and during it. We advise traders to be very careful about initiating new positions prior to the election results as volatility will likely be high. Only experienced traders should attempt to trade the volatility. The safest bet is to wait and see what price action develops in the wake of the election results and then act accordingly. We will update our members in the members trade setups newsletter as the price action unfolds this week.
GBPUSD – Sterling/dollar continues moving higher
The GBPUSD rallied aggressively last week, breaking and closing well above 1.2329 resistance on major news out of the UK regarding ‘Brexit’ requiring a vote in Parliament. We updated our previous bias on the GBPUSD 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.
AUDUSD – Aussie/dollar looking to potentially break higher
Last week, we discussed that we removed our previous short bias on the AUDUSD and anyone still short would probably be wise to exit those positions and potentially consider getting long. It looks like an upside breakout could be imminent in this pair and we could look for buying opportunities on any near-term weakness above 0.7557 support area.
EURUSD – Euro/dollar pushing higher, but will it last?
Price rallied hard last week in the EURUSD, closing up above 1.1125 resistance on Friday. We could see more upside this week, but volatility will be high with the US election coming on Tuesday. Traders can potentially look to get long on a 1hr, 4hr or daily chart buy signal following weakness, targeting 1.1280 resistance. But again, be vigilant with the expected increase in volatility.
Gold – Spot Gold pushes into key resistance zone, may fall
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.