Skip to content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
Oil - US Crude
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Price Action Setups Around the U.S. Presidential Election

Price Action Setups Around the U.S. Presidential Election

James Stanley, Senior Strategist

Price Action Setups Around the U.S. Presidential Election

To receive James Stanley’s Analysis directly via email, please sign up here.

- In this webinar, we used price action to look at macro markets ahead of the results for today’s U.S. Presidental elections. The election tonight can elicit lower levels of liquidity and increased volatility, so much of what we discussed was based upon reacting to the potential reactions around price action tonight; rather than attempting to predict what may happen.

For more information, please check out our market talk article from earlier today entitled, Price Action Setups Ahead of the U.S. Presidential Election.

- Given recent price action in USD, Gold and the S&P 500; we can deduce that the near-term reaction would likely be one of USD and Stocks weakness (and Gold strength) in the event of a Trump scenario with the exact opposite in terms of a Clinton scenario.

- As we noted with the Brexit referendum: In a Trump scenario, the down-side in the S&P may be abbreviated as this election does nothing to change the role of the backing Central Bank (Federal Reserve). With Brexit, a lot of fear drove prices lower but within a couple of trading days, support had returned and higher prices came-in as the Bank of England implied even more monetary support.

- Of specific interest around tonight’s election will be price action in the U.S. Dollar. A big takeaway from last week was just how weak the Dollar got on rising odds of a Trump scenario. Again, the more critical driver here is the Fed, and the Fed has been persistently hawkish on the prospect of rate hikes in December. A Trump scenario upsets those odds as it introduces considerable uncertainty into the environment.

--- Written by James Stanley, Analyst for DailyFX.com

To receive James Stanley’s analysis directly via email, please SIGN UP HERE

Contact and follow James on Twitter: @JStanleyFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES