Electiontrading
Stocks break out on election's nightElection night has proven to be beneficiary to both parties (depends what you understand by that but it is a consensus, I think sometimes necessary in democracy). Everything went, more or less, according to the polls. Gran'Ol'Party will keep Senate while Dems will get the House. From now on it may get more interesting, although Trump has never had full support of all the Reps. Yields fell (US10Y) on the news as traders consider the outcome of elections as non-inflationary. Stock futures raise (ES1!) and break out above the previous high (HOTW). Well, they look diverged. One will catch up the other one. Good time to play the divergence.
Have a good day everyone.
Possible support zones on USDMXN before resuming bullish trend Using multiple swings: 04/17 (yellow), 04/27 (green), 05/11 (blue), 05/28 (red) to highest high made yesterday 06/14, the fib levels seem to overlap.
Dollar index (DXY) 2016-2017 Analysis: Rally to continue post elTalking Points:
DXY Technical Strategy: Keeping bullish outlook
Elliottwave Count: Nested impulsive count
Analysis
DXY (Dollar Index) is trading impulsive in post election session and able to break channel resistance. We were calling reversal from 19-Aug-2016 and looking for 100 levels during August month. Current count is suggesting more upside towards 103 and above. However, we are expecting small set back of this impulsive rally. Index is testing horizontal resistance near 101.50 area. Break of this level will have 103.15 zone.
Action
As We are expecting small set back to re-test channel support, we are looking to re-initiate our long position on dollar basket, i.e. we are looking to sell EUR/USD (Euro / US dollar), NZD/USD (New Zealand Dollar / US Dollar), Crude Oil, etc.
-- By @HoagTrading (Hoagtrading.com)
