To recap: The Dems re-took the House and the Republicans kept the Senate in the recent US mid-term Congressional elections.
Overal, the potential deadlock is supposed to be dollar-negative. But the headlines point to the President’s shift to a more negotiation-friendly tone prompted an equally firmer tone in the dollar after the Wednesday open of US markets.
We’re not entirely sure where that reporter saw the dollar having a firmer tone. Maybe he (or she) was only looking at the euro and yen charts.
This is where we’re at for the moment.
EURUSD is now resting above bids around 1.1430. For the dollar to resume a bullish outlook, EURUSD will need to clear 1.1430, 1.1380, and then 1.1330 dollars.
GBPUSD hit 1.3170 overnight and is now coming off after the election fever had died down. Sterling will have a long way to go as well to prove that the dollar bull is coming up. It will need to clear 1.3050 or otherwise trade sideways with no bias.
AUDUSD has a similar upward bias as cable. For the dollar to maintain a firmer tone (as reported in the press), the Aussie will need to come back down and clear 71.80 and then 70.80 cents. AUDUSD is currently dealing around 72.80 cents.
Only USDJPY looks really bullish at the moment. But the orders around 113.80 look pretty heavy for now.
So does the dollar really have a firmer tone or will it continue to firm up going forward?
We’ll see after the FOMC tonight.
In the meantime, #TradeAtYourOwnRisk with #Mocaz at #RealTraderCommunity.