US election indecision leaves Euro and Pound negative (EURUSD and GBPUSD forecasts)

Intermediate
  • A stronger US Dollar theme so far in the wake of US election results as they are still coming in, with the outcome still too close to call.
  • This has likely reflected a “flight to quality”, with investors and traders looking for “safe havens”, given the threat of a disputed election result.
  • This US Dollar strength leaves both the EURUSD and GBPUSD forex rates vulnerable to losses, which we look at here.

EURUSD day trade outlook: Bear forces

An erratic Tuesday-Wednesday theme with a spike above resistance at 1.1758, then a failure back from below 1.1788, from 1.1771, to push below the key 1.1611 swing low from September, to reinforce the late October sell-off through key flagged support at 1.1687 (to shift the intermediate-term outlook to bearish), to keep the bias to the downside Wednesday.

Day trade setup

  • We see a downside bias for 1.1630 and 1.1601; a break here aims for 1.1580 and maybe towards 1.1539.
  • But above 1.1704 opens risk up to 1.1771, maybe 1.1788.

EURUSD intermediate-term outlook

The end of October push below 1.1687 signalled an intermediate-term shift to a bear trend.

  • Downside risks: We see an intermediate-term bear trend to aim for 1.1539, 1.1369 and maybe 1.1166.
  • What changes this? Above 1.1881 shifts the intermediate-term bear trend straight to an intermediate-term bull trend.
8 Hour EURUSD Chart
8 Hour EURUSD Chart

GBPUSD day trade outlook: Downside risks, despite spike higher

A Tuesday-Wednesday spike higher above 1.3122 resistance but capped by and recoiling back lower from below the key 1.3177 peak, down from 1.3140, to sustain negative pressures from the latter October pushdown through 1.2916/10 and the up trend line from latter September, to keep the threat lower for Wednesday.

Day trade setup

  • We see a downside bias for 1.2921 and 1.2854/45; a break here maybe aims for 1.2819/05, then maybe for 1.2774.
  • But above 1.3055 opens risk up to 1.3140 and possibly towards 1.3177.

GBPUSD intermediate-term outlook

The early October push above 1.3007 signalled an intermediate-term shift to a range, seen as 1.3239 to 1.2687/75.

  • Upside risks: Above 1.3239 sets an intermediate-term bull trend to aim for 1.3359, 1.3486/1.3515 and maybe 1.3711.
  • Downside risks: Below 1.2687/75 sets an intermediate-term bear trend to aim for 1.2644, 1.2480 and maybe 1.2251.
8 Hour GBPUSD Chart

Editor in chief

Steve Miley has 29 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Market Chartist, the Editor-in...continued

Comment on this video

Your email address will not be published. Required fields are marked *


Latest Related News

Euro and Pound bull breakouts (EURUSD and GBPUSD forecasts)

The US Dollar stays weak in the ongoing “risk on” environment.“Risk on” is being driven byVaccine hopesBiden bounceImproving global dataThe Euro has pushed to a new multi-month peak versus the US Dollar (EURUSD forecast)The Pound is looking at progress at the EU-UK trade talks for further upside gains against the USD (GBPUSD forecast) EURUSD day trade outlook: Surge above key 1.2011 peak A surging advance… Continued

Markets keep the party going, despite surging US COVID-19 cases

Macroeconomic/ geopolitical developments A fairly quiet week on the macroeconomic and geopolitical front, with the holiday shortened session in the US on Thursday and Friday because of Thanksgiving.The main development was on the US political side, as the Presidential transition of power has started properly, and although the Trump administration continues dispute the election result, they have allowed Biden’s team to start the transition. Also,… Continued

US Dollar stays weak as AUDUSD and USDCAD approach key levels

Dollar Index reaches final major support (DXY forecast)Euro breaks up (EURUSD forecast)Pound posts negative (GBPUSD forecast)Aussie reaches major monthly resistance (AUDUSD forecast)Dollar-CAD approaches its major support zone (USDCAD forecast) Continued

Euro and Pound stay bullish – EURUSD and GBPUSD forecasts

A weaker US Dollar still the dominant Forex markets theme with the ongoing “risk on” environment.“Risk on” is being driven by the start of the US Presidency transition of power, the appointment of Janet Yellen as US Treasury Secretary, plus from the three vaccine announcements in November.The Euro has pushed above 1.1900 and resumed the positive tone seen earlier November, aiming EURUSD into month-end and… Continued

“Risk on” mode reflected by “commodity currency” resilience

Macroeconomic/ geopolitical developments The announcement last Monday from Moderna that their COVID-19 vaccine produced very positive trial results sustained the prior “risk on” theme, evident after the similar announcement from Pfizer the Monday before. This “risk on” tone was further reinforced by another positive statement from the Astra Zeneca/ Oxford University trial in the week.On the US politics side, there is still a negative impact… Continued

Forex Brokers in your location


SIGN UP

72% of retail investor accounts lose money when trading CFDs with this provider.


SIGN UP

74-89% of retail investor accounts lose money when trading CFDs with this provider.


SIGN UP

75% of retail investor accounts lose money when trading CFDs with this provider.


SIGN UP

76.4% of retail investor accounts lose money when trading CFDs with this provider.