The US Dollar (USD) rises sharply on Wednesday after former US President Donald Trump secured enough electoral votes to become the next US president. The former US President has secured 277 votes, more than enough to surpass the magic 270 threshold needed to secure a majority. An additional element that might result in more US Dollar strength is the fact that the Republicans have secured a majority in the Senate. While the race to control the US House of Representatives is still undecided, it looks like Trump will not be a lame-duck president and will have support from both institutions when it comes to passing laws. The is very light on Wednesday. It looks like traders will be able to further assess and focus on the outcome of the US presidential election. Besides the Mortgage Bankers Association (MBA) weekly Mortgage Application numbers, nothing special is expected on the economic data front.
Daily digest market movers: Trump has been elected as US president
US Dollar Index Technical Analysis: Hail to the King! (DXY) is reclaiming its throne as the King of all currencies. The Greenback has been gaining in several big figures against most of the major G20 currencies, resulting in a US Dollar Index that broke above the 105.00 level. With a small fade taking place at the moment, looking for near support will be vital, while markets will need to wait for a few months until Donald Trump is sworn in again as President and starts to take measures, introduce tariffs, and other elements that will move all asset classes. The new levels to look out for on the upside are not seen since June and July. The first up is 105.53 (April 11 high), a very firm cap resistance, with 105.89 (May 2 high) just above. Once that is broken, 106.52, the high of April and a double top, will be the last level standing before starting to talk about 107.00.On the downside, last week’s peak at 104.63 looks to be the first pivotal support nearby. Should the fade become bigger, the round level of 104.00 and the 200-day Simple Moving Average (SMA) at 103.85 should refrain from sending the DXY any lower. (Click on image to enlarge)US Dollar Index: Daily ChartMore By This Author:Crude Oil Sets Forth Winning Streak With Aramco Earnings Sign On The Wall For OPEC+ To Step Up Efforts Crude Oil Surges After OPEC Confirms Delay Of Supply Restart US Dollar Trades Flat This Friday Ahead Of Durable Goods Data
