tradingkey.logo

DXY: 2-way trades to dominate – OCBC

FXStreetNov 6, 2024 11:04 AM

The US Dollar (USD) traded higher, as vote count skews in favour of Trump at time of writing. DXY was last at 104.92, OCBC’ FX analysts Frances Cheung and Christopher Wong note.

Trump outcome may see a play-up of US-China trade tensions

“The 7 swings states of Georgia, North Carolina, Pennsylvania, Michigan, Wisconsin, Arizona and Nevada matter (account for 93 electoral votes). Early count (based of 79% votes counted) shows Trump gaining the momentum in Georgia while West Virginia flipped in favour of Trump. It is still early to call at this point and news flow of tally count should continue to drive 2-way trades in FX markets intra-day.”

Daily momentum remains bearish while RSI rose from near oversold conditions. Resistance at 105.20 levels. Support at 103.70/80 levels (21, 200 DMAs, 50% fibo), 102.90/103.10 levels (100 DMAs, 38.2% fibo retracement of 2023 high to 2024 low) and 102.30 (50 DMA).

“Outcome will have implications on FX as shifts in fiscal, foreign and trade policies may occur, depending on whether Trump or Harris is elected as the next President. A Trump outcome may see a play-up of US-China trade tensions and should pose upward pressure on USD, UST yields (i.e. long gold, short CNH). However, a Kamala Harris outcome should see anxiety ease. On this note, USD, UST yield can ease and Asian/ high-beta FX should find a breather.”

Disclaimer: For information purposes only. Past performance is not indicative of future results.

Related Articles

tradingkey.logo
tradingkey.logo
Intraday Data provided by Refinitiv and subject to terms of use. Historical and current end-of-day data provided by Refinitiv. All quotes are in local exchange time. Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only. Intraday data delayed at least 15 minutes or per exchange requirements.
* References, analysis, and trading strategies are provided by the third-party provider, Trading Central, and the point of view is based on the independent assessment and judgement of the analyst, without considering the investment objectives and financial situation of the investors.
Risk Warning: Our Website and Mobile App provides only general information on certain investment products. Finsights does not provide, and the provision of such information must not be construed as Finsights providing, financial advice or recommendation for any investment product.
Investment products are subject to significant investment risks, including the possible loss of the principal amount invested and may not be suitable for everyone. Past performance of investment products is not indicative of their future performance.
Finsights may allow third party advertisers or affiliates to place or deliver advertisements on our Website or Mobile App or any part thereof and may be compensated by them based on your interaction with the advertisements.
© Copyright: FINSIGHTS MEDIA PTE. LTD. All Rights Reserved.