U.S. Dollar Poised to Launch Higher | DailyForex

Adam Lemon

At the start of last week, I wrote about how as it is becoming increasingly certain that Clinton is going to win the election, there is going to be a resultant boom in the USD, and questioned the point of waiting until after the actual result. I don’t think there has been a U.S. Presidential election in as little doubt since 1996. I was predicting that over the coming week, the U.S. Dollar would start to move.

Although the overall move was small in percentage terms, it was a bullish week for the U.S. Dollar. There are a few bullish factors that stand out.

Technically, the U.S. Dollar index made a “golden cross” this week. This is when the 50 day moving average crosses above the 200 day moving average and is a very widely followed technical bullish signal.

The U.S. Dollar has made new key highs against the Euro and Canadian Dollars, and is looking strong everywhere with the possible exception, amongst the majors, of the Japanese Yen:

usdcad_23102016

eurusd_23102016

It is true that recent data releases have not been so spectacular. The next real test coming from any scheduled fundamental news concerning the U.S. Dollar will arrive on Thursday, with the release of Core Durable Goods Orders and Unemployment Claims.

The only thing that might spoil the party would be an unexpected rash of polls showing Trump closing the gap. This could roil the markets. In the unlikely event that this does happen, I would just see it as a good buying opportunity. I have no doubt that Clinton will win.

USD Launch Higher

Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.
Learn more from Adam in his free lessons at FX Academy

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