USD price lowering, EURo, GBP, AUD bullish after US mid-term election, further USD Downfall expected
- The US currency has reacted negatively to the US mid-term election result, as a risk of political gridlock in Washington is looming large
- With democrats controlling the house of representatives and Republicans retaining the senates, Trump administration is going to face tougher situation in future regarding any situation
- The result might bring political jam to Washington D.C., potentially damaging the US currency and the results are already in the screen, as USD falls about 60 points in the Asia pacific trading sessions
USD Price declining, more falls might have been on the card
After the result of US mid-term election, US index is softening as expected and democrats won the control of house of representatives. It provides the democrats a much better chance to block Trump’s agendas and as a result, USD has already started to weaken against most of the currencies. While this report is being prepared, USD is residing at 95.27, yet a fall below 94.80 might just be a matter of time. However, as the market has absorbed the pressure, key resistance for USD still resides at 94.40 region. A fall below 94.40 would open up the pivotal point of support that resides at 93.30.
USD hourly price chart
As USD is easing, EUR, GBP and AUD have at last broken their potential points of dead allies and started to lift higher. European shares are also experiencing a bullish momentum, as FTSE 100 is 1.1% up, Germany DAX up by 1.0% and France’s CAC 40 is 1.2% up. US bond prices have been upped significantly as well providing cushions for USD downfall.
During preparation of this report, EUR/USD, GBP/USD and AUD/USD are residing at 1.1496, 1.3165 and 0.7292. If market is propelling according to the current momentum and market catalysts, more downfall is expected for USD and a fall below 94.80 region might have just been a matter of time.
Read more on US mid term result here
[Disclaimer: The content of this article is personal opinion and should not be considered as investment advice or suggestion towards any trading activity.]