US Elections Drive USD and Indices. Forex Trading on Gold (XAUUSD) Falling on Strong USD. NASDAQ at All-time High.

In today’s GCI Market Outlook let’s take a look at Forex Trading on WTI Crude Oil, the NASDAQ, Gold (XAUUSD), USDCHF, and EURUSD.

We have been saying for weeks that a Democratic win will drive USD lower, well look what happened.

As a major shock to most of the planet, the Republicans under Donald Trump won the election.

So, all USD pairs flew stronger but will they keep going?

From the technical side, we saw a 255 pip drop in EURUSD and a pullback signalled by the stochastic oscillator.

The same USD strength was seen in USDCHF.

And with gold falling from all-time highs to the mid-$2600s.

Last time we told you to watch the NASDAQ and wait for the MACD signal line to break out of the histogram for a possible reversal.

Meanwhile, opposing forces drove price action into a double bottom, then we had the election.

This is what the markets call The Trump Trade driving the NASDAQ to an all-time high.

In our last video we saw this second cup and handle pattern and, sure enough, it went bullish.

Price action was disrupted by the US elections but, if you had your stop loss below the handle, you were protected.

On the 4-hour WTI chart, watch the stochastic oscillator which is overbought.

Regarding the economic calendar, the central banks will consider a Trump presidency as inflationary.

Therefore, the question is, will the Bank of England and the US Federal Reserve lower Interest Rates as expected?

Let’s see.

That’s all for now.

CFDs and FX are leveraged products and your capital may be at risk.