The major market sensitive weekend story to hit newswires has been the FBI’s decision to sharpen their focus on previously undiscovered Hilary Clinton emails.
A month ago we spoke about how real the risk of a Donald Trump presidency actually was, and most importantly how blasé forex markets were treating the prospect.
With Clinton seemingly in an unassailable position, markets were happy in their comfort zone: Just look at the rally in that USDX daily!
But combined with the obvious marked resistance zone, this FBI/Clinton can of worms has some serious potential to wreck the market’s confidence for a foregone conclusion and as we get closer to decision day, things could get interesting.
Now with this newly found risk-off tone in mind, one interesting chart to start the week is Gold, with price unable to break out of major weekly resistance and then being squeezed down hard.
The daily highlights the break, and as soon as that major level went, a hawkish Fed and Trump debate failure all combined to destroy Gold longs.
With the thought process still being that the market risk of a Trump presidency continues to be ignored, the greatest chance of a major re-pricing lies to the long side on Gold.
The most obvious short term support/resistance level that has just held is marked here on the 4 hourly. Certainly a level to keep your eye on (and allows for a stop wider than 10 pips!) if you’re a Gold bull.
Best of probabilities for your week’s trading!
On the Calendar Monday:
CHF Daylight Saving Time Shift
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Dane Williams – @VantageFX
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