Markets got stuck ahead of the publication of the US Presidential election results. The market stagnation is likely to take place until tomorrow’s Asian session. Notably, preliminary data will be revealed just after the US trading session. Let’s try to predict the market direction on the background of the first results.
Curiously, markets declined amid opinion polls forecasting a confident victory of Joe Biden. The fact is that investors will face numerous uncertainties if Biden wins the election. During the political campaign, neither Biden nor Trump tackled economic issues. Instead of this they accused each other of corruption and cooperation with foreign intelligence agencies. That is why Joseph Biden’s approach to economic problems is still unknown. Taking into account sour relations between Donald Trump and democrats, the latter may switch to a completely new policy.
Nevertheless, investors suppose that Trump’s policy was quite successful. In the first three years of his presidency, the country’s economy was flourishing. However, the situation changed after the coronavirus outbreak. Notably, in 2019, the US logged the lowest unemployment level. Moreover, stock indices were hitting one record after another. Most US industrial giants returned to the US. That is why Donald Trump’s victory will surely boost the greenback. Otherwise, US stock indices and national currency may slump.
Yesterday, the euro/dollar pair reached support at the low of 1.1612 logged on September 25. After that, the quote slowed down and jumped.
If the price consolidates above 1.1710, it is likely to start hovering between the levels of 1.1630/1.1710. The highest trading activity is expected during the Asian session on November 4 when the election results will be unveiled.
At the same time, the pound/dollar pair managed to reach the level of 1.2860. After that, it rose above 1.2900.
According to the trading chart, during the European session, the market was under bullish control. That is why the price returned to the local high recorded on October 30. The speculative activity is extremely high. However, it may unexpectedly tumble. The resistance area is located at 1.2980/1.3025. The number of long deals is likely to drop at the mentioned levels.
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