The Trump’s victory on election reflected on the EUR/USD pair both during the elections and after London open. The pair spiked exactly as predicted in the latest EUR/USD analysis. As expected, the USD plummeted at the pinnacle of the vote count for the US Presidency, with the USD Index touching 95.83. We saw a movement of funds to safe haven currencies like the JPY and CHF, and surprisingly the EUR strengthened too. We saw the EUR/USD hit 1.13 during those moments of the vote count, and yet we don’t know the overall impact on global trade as a result of Trump’s trade protectionism plans. We still need to wait and see if the funds leave the USD again.
At this time the pair made a railway pattern showing two momentum candles. According to high momentum (volatility) trading and analysis, traders could short the pair on a retrace towards POC1 and POC2. POC1 1.1100-1.1110 (L3, 38.2,trend line, bearish order block) is a shallow retracement but the EUR/USD could react there in short term bearish move. POC2 is a deeper retracement that’s in conjuction with high momentum price action. 1.1175-85 (61.8, monthly trend line, H3) is better retracement overall and overall both rejections could target 1.1025. 1.1025 is important level as the drop below would target 1.0990 then 1.0930 and 1.0865.
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