FundamentalOverview

The US Dollar started theweek on the backfoot as the odds of a Harris victory jumped higher leading to apullback in the Trump’s trades.

Everything hinges on the USelection now with a red sweep seen as the most bullish scenario for thegreenback, while a blue sweep as the most bearish.

The price action willlikely be choppy until we start to get a better sense of who’s going to win, sothe best strategy would be to wait for the results, because the trend that willbe set will likely last for months anyway.

On the AUD side, the RBA kept the cash rate unchanged today as expectedbut lowered growth and inflation forecasts slightly. This is just anothersubtle change towards a more dovish stance, although the market’s focus is nowelsewhere.

AUDUSDTechnical Analysis – Daily Timeframe

On the daily chart, we cansee that AUDUSD pulled back to the key 0.6622 level amid a weaker US Dollar.This is where we can expect the sellers to step in with a defined risk abovethe level to position for a drop into new lows. The buyers, on the other hand,will want to see the price breaking higher to increase the bullish bets intothe 0.68 handle.

AUDUSD TechnicalAnalysis – 4 hour Timeframe

On the 4 hour chart, we cansee that the price broke above the downward trendline that was defining the bearishmomentum on this timeframe. This might be a signal of a deeper pullback tofollow. There’s not much else we can add here as the sellers will lean on the0.6722 level to position for new lows, while the buyers will look for a breakhigher to target new highs.

AUDUSD TechnicalAnalysis – 1 hour Timeframe

On the 1 hour chart, we cansee that we now have a minor upward trendline defining the current bullishmomentum on this timeframe. The buyers will likely lean on it to position forthe break of the 0.6722 level, while the sellers will look for a break lower toincrease the bearish bets into new lows. The red lines define the average daily range for today.

UpcomingCatalysts

Today is the US Presidential Election Day but we will also get the US ISMServices PMI report. On Thursday, we have the US Jobless Claims and the FOMCPolicy Decision. On Friday, we conclude the week with the US University ofMichigan Consumer Sentiment report.