EURUSD: Consolidation until the U.S. elections.

EURUSD on the 1W chart (RSI = 56.143, MACD = 0.005, ADX = 35.655) is forming a very interesting pattern very similar to the trading action before the previous (2016) U.S. Presidential elections.

First of all let's start with the fact that the 1W MA200 has been roughly acting as a Resistance since mid 2019 (roughly because candle wicks broke above but quickly corrected back in). After the COVID break-out and March lockdowns, the price broke above the 1W MA50 which has also done in early 2016, where it consolidated until the U.S. elections. The elections delivered a strong flush to 1.035 and after that we saw a strong yearly rally based on Trump's claims that the USD was too strong for a healthy economy.

It is possible to see a similar consolidation pattern before the U.S. elections this November (2020) followed by a new multi-month rally. We advise investors to wait until the elections for a long-term engagement on EURUSD.



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