Where we are… (after elections)
This is a quick look at situation on different pairs and indices.
Recent weeks were very nervous. You could see clearly that elections in France have impact on currencies.
In Europe we had a suprise with Brexit vote. In USA there was a win for Trump. Could be Marine Le Pen a next suprise choice?
Now we know the answer.
To be honest, I decided not to trade in last few weeks. This was an environment I do not like to trade when one false news or rumor can impact strongly price. Still, it wasn’t that bad for those who traded. There where some trend moves. Lets see where are we now.
We have this gap here and right after that breakout from the triangle. Below daily chart:
When we check weekly chart we can see that EUR/USD is right at 100 SMA:
In my opinion, if EUR/USD can make it above that resitance level (100 SMA) then we can see more potential to move up.
Another important pair for this elections.
We can see the gap from April 24th (like on other pairs). This impet was not strong enough to go higher on this pair, daily chart:
Overall, situation not clear because of range move. 100 SMA is below 200 SMA, we have to wait for breakout from range.
You can compare movement after gap. In EUR/GBP there was no follow-up. In DAX case, we can see that this gap (from the same day) started a strong move up, daily DAX:
Situation here is more interesting on higher time frames. DAX moved above important resistance level. If it can hold here, there can be a continuation of this uptrend, weekly chart:
It was all about France so lets have a look at their stock index – CAC 40.
No big suprise here. We can see almost identical situation as on DAX. Daily CAC with move up after a gap:
And weekly CAC, where we can see break above important resistance:
There were some interesting moves on other pairs, but here I wanted to present a quick overview.