Dollar strengthens as investors optimistic on inflation after Trumps win and trade setups for the week ahead Nov 13, 2016

The U.S. Dollar got a boost of confidence as investors loaded up on greenbacks in anticipation that Trump’s win could signal a greater possibility of a December rate hike. 

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U.S. Yields

U.S. bond yields rose across the board signaling the attractiveness to equities as well serve as an indication for a future rate hike. Investors are closely following Trump’s upcoming proposals including to deport illegal immigrants, renegotiate free trade agreements, and unleash large fiscal stimulus.

Moving onto this week’s chart setups, we have to consider the fact that there is a high level of unwanted volatility that makes it non-optimal for 4-hour and longer term timeframes.

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EURUSD 1-Hour

Over on the daily timeframe, the Euro is signaling continued downward pressure with a possible lower break-out off of this consolidation. If this breakout does hold up, we can expect further downward pressure.

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EURUSD 1-Hour

Switching over the a lower time-frame, I am currently eyeing two possible entry zones if price upticks to these zones. These mark two potential supply zones where there is a high probability traders will enter in to sell again. For now, EURUSD is one of the pairs on my watchlist.

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AUDUSD 1-Day

Over on the next pair, AUDUSD broke lower off of a daily consolidation and sold off on the election news. For the week ahead, the major risk is the Australian employment change and unemployment rate releases with expectations at 20.3K and 5.7% respectively.

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AUDUSD 1-Hour

Over on the hourly time frame, I continue to remain rather bearish anticipating further downside risk. Current trade setup is to enter short when prices makes a retracement back to the 0.7590~ price zone. Hopefully, this takes off well before Wednesday’s employment figures as after that we may expect further unwanted volatility.

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USDJPY 1-Hour

Finally, I am currently looking at two long entry opportunities on the USDJPY pair. Price is currently sitting at the daily resistance level with expectations of a quick retracement down to a bit under the 107~ price zone for another bullish move. The U.S. Dollar is expected to continue climbing following the continued high yields.

These are the current trade setups I am watching right now. Stay tuned for more.

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