Election Road Map for USD/CAD, NZD/USD, USD/JPY & Gold
- Observations on the majors ahead of the U.S. Presidential Election
- Updated targets & invalidation levels
- Event Risk on Tap ThisWeek
Technical Outlook: Kiwi is trading just below a key resistance confluence at 7380 heading into the U.S. Presidential Elections and the Reserve Bank of New Zealand (RBNZ) interest rate decision the tomorrow. The focus remains on a reaction off this zone with the immediate topside bias at risk while price is below. Interim support remains at 7292/95 with key support still down at 7214/18. A topside breach targets 7450& 7480.
Technical Outlook: USDJPY gapped back into this ascending pitchfork formation with the subsequent rally now approaching the October close highs at 105.28 which is backed closely the May Low at 105.55. The topside bias is at risk heading into these levels with a break of the weekly opening-range low needed to shift the focus back towards key support 102.80 where the 100-day moving average converges on a basic 50% retracement of the late-September advance. A breach higher shifts the focus towards confluence resistance objectives at 106.60 & 107.44.
Technical Outlook: Gold is trading just above near-term support at 1272/75- this region is defined by the basic channel support, the 50% retracement of the October advance and converges on a pair of longer-term median lines. A break below this region shifts the medium-term focus lower in gold targeting 1249 backed by the median-line confluence down at ~1236. Interim resistance steady at 1303.