The closing of the US elections is expected on Wednesday. Next week will be the most defining week of the year for the dollar and commodities. Management funds and economists argue that the effects on the dollar could be pernicious regardless of the electoral results (since they are minimal differences between one winner or another). The impact expected by the market is an effective vaccine that is already circulating in the world and economies reopen. Now, everything will change if the electoral difference between one candidate and another is important. The final numbers will give indications if the international market can trust the dollar again or not. The balance will tilt towards the dollar and fall in commodities if Donald Trump wins with a significant difference.
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EURUSD closed its sold week. Selling preference below 1.1650 to 1.1630 and extensions 1.1620. Minimum area with high buyer potential. If the minimum buyer prices expire, we continue to sell below 1.1620 to the level of 1.1580. Otherwise, we expect purchases within the 1.1620 and 1.1650 levels.
GBPUSD closed its sold week. Selling preference below 1.2950 to 1.2930. Passing 1.2930 we continue selling until 1.29 and extension 1.2890. High potential buyer lows between 1.2890 and 1.29. The publication of the interest rate on Thursday could bring correction in the cross.
USDJPY closed below 105.0. The potential of the crossover remains on the buy. By not having exceeded 105.0, buyers are waiting for progress in the electoral result. A low difference between the Republican or Democratic winner would bring dissatisfaction for the financial market. This crossing could be the victim of a lack of confidence in the dollar during the week.
USDCAD closed below 1.3330, although it remains bought against 1.33. The potential remains buyer although with doubts in its performance above 1.34. The preference is buyer only above 1.3330. up to 1.33350, passing the maximum if there would be a possibility of trading at 1.34 and 1.35 during the week. A rampant difference as the Republican candidate winner could return confidence to the dollar during the month of November. Employment data is added on Friday.
XAUUSD XAGUSD gold and silver closed their week without the minimum price necessary to wait for buyers during the week. In silver we expect buyers only above 24.0. Sales start at 23.40 until 23.20 and extensions. The electoral results would affect the bet on commodities regardless of the winning results. The pandemic context will prioritize over the presidential elections in commodities. We estimate that both gold and silver are affected by the race in the cure (vaccine) of Covid-19. Gold remains below 1900.0, only above this level would we return with a buying strategy. Sales are from 1873.50 to 1867.0 the selling pressure could continue until the 1800s. If the buying pressure remains above 1883.90 we could have buyers interested in gold during the week. Although the change of strategy we will only keep it for over 1900.
SP500 remains lower. Below 3300 points the strategy is selling. DAX remains lower, below 11,700 points buyers do not hold positions.
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