London Forex Report: Trumped!

London Forex Report: Trumped!

London Forex Report: As i write Donald Trump is poised to become the 45th President of the United States. Markets have been roiled by this news with US index futures markets limit down after hitting circuit breakers as the Trump Presidency became a reality. Clinton held 5% lead over Trump in the last Reuters national tracking poll before Election Day.

FX Majors: EUR On the release front, German Industrial Production disappointed the markets with a decline of 1.8 percent, well short of the forecast of -0.4 percent. While Germany’s surplus narrowed to EUR 21.3 billion, missing the forecast of EUR 23.4 billion GBP UK’s industrial production fell 0.40% MOM in September and August as continued maintenance at North Sea oilfields weighed down on the oil & gas sector. Production in the mining & quarrying and the utilities sectors were also lacklustre, overshadowing the robust manufacturing sector. Sterling’s depreciation has boosted demand for Britain’s goods and kept factories production on solid footing JPY Indicating slight improvement in economic conditions in September, a preliminary reading of Japan’s coincident index came in slightly higher at 112.1 versus August’s reading of 111.9. On the contrary, the gauge of economic optimism in the same month showed that businesses were anticipating business conditions to deteriorate in the next few months.

EURUSD
Outlook: Short Term (1-3 Days): Neutral – Medium Term (1-3 Weeks): Bearish

Technical: 1.1310 resistance 1.10 support wait for the dust to settle to get a better read on levels
Retail Sentiment: Neutral
Trading Take-away: Neutral

GBPUSD
Outlook: Short Term (1-3 Days): Bullish – Medium Term (1-3 Weeks): Bearish

Technical: Medium term resistance is sited at 1.2550. A close over 1.2550 eases bearish pressure. Interim support is sited at 1.24, below 1.2350 suggests false upside break and return to broader range trade.
Retail Sentiment: Neutral
Trading Take-away: Neutral

USDJPY
Outlook: Short Term (1-3 Days): Bearish – Medium Term (1-3 Weeks): Bearish

Technical: 101 to 105.50 is the range wait for dust to settle for better trading levels
Retail Sentiment: Neutral
Trading Take-away: Neutral

EURJPY
Outlook: Short Term (1-3 Days): Bullish – Medium Term (1-3 Weeks): Bearish

Technical: Upside attention on 116.20 as the primary upside objective with in in the broader 112-116 range. A tops side expansion through 116 opens 121 equidistant swing objective. Back below 114 opens 112 again.

Retail Sentiment: Bearish
Trading Take-away: Long

Commodities FX: GOLD surging on uncertainty. OIL whipsawed lower on market uncertainity AUD retreats sharply in a risk off environment. Heavy AUDJPY sales helped drag AUDUSD down. Australia November Westpac/MI consumer confidence index slips 1.1% to 101.3. CAD decimated on risk off market mood.

AUDUSD
Outlook: Short Term (1-3 Days): Neutral – Medium Term (1-3 Weeks): Bearish

Technical: AUD continues to rotates in the upper end of the contracting range with .7730 capping upside and .7500 containing downside reactions, a breach of the lower end of the range opens .7412 symmetry support. Through .7750 opens .7830 on the upside.
Retail Sentiment: Neutral
Trading Take-away: Neutral

USDCAD
Outlook: Short Term (1-3 Days): Bullish – Medium Term (1-3 Weeks): Bullish

Technical: As 1.3230 supports bulls target a move to 1.35, only below 1.2960 threatens this objective and suggests a test of pivotal 1.2820.

Retail Sentiment: Bearish
Trading Take-away: Long

XAUUSD
Outlook: Short Term (1-3 Days): Bullish – Medium Term (1-3 Weeks): Bearish

Technical: Wait for dust to settle for trading levels

Retail Sentiment: Neutral
Trading Take-away: Neutral

USOIL
Outlook: Short Term (1-3 Days): Bearish – Medium Term (1-3 Weeks): Bearish

Technical: The failure at 46.03 has opened 42.73 as the next downside objective ahead of 39.78. Near term resistance is sited at 44.86 ahead of 46.38
Retail Sentiment: Neutral
Trading Take-away: Neutral

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