Democrats win House but Republicans hold Senate | 7120 resistance 7050 support | Trading analysis

Democrats win House but Republicans hold Senate | 7120 resistance 7050 support | Trading analysis

7th November 2018

We ended up with quite a bear Tuesday after all yesterday as the bears broke the 7100 level to get a low at 7025 before a move back up towards the 7075 level in the afternoon as the US headed to the polls.

The FTSE 100 lagged its continental rivals after the pound was propelled to a five-month high against the euro by resurgent hopes of a Brexit deal. The currency’s rally spilt over into a second day as a rollercoaster ride highlighted its hyper-sensitivity to Brexit headlines. After its early gains were erased by the DUP warning that the UK is “heading for no deal”, restless currency traders latched on to Brexit Secretary Dominic Raab giving a crunch Cabinet meeting the “thumbs up”.

Democrats are poised to reclaim the U.S. House, fueled by voter anger and discontent with President Donald Trump to a victory that would dramatically alter his next two years in office and make a deeply divided nation even more difficult to govern.

Republicans, meanwhile, retained control of the Senate after GOP candidates unseated incumbent Democrats in Indiana and North Dakota and won an open seat in Tennessee. That will give Trump a partial claim of victory and allow him to continue his drive to reshape the federal courts.


FTSE 100 Trading Signals, Forecast and Prediction

More often than not markets rally after mid-term elections, irrespective of the result. We didn’t quite get as low as the key daily support at 7010 yesterday however the climb from 7025 has maintained overnight and we are looking at a rise to test the 2 hour resistance levels at the 7110 level today. If the overnight rise continues we may well see that first thing then a bit of profit taking as we dip back towards the 30 minute support at 7055. Though bear in mind if that breaks then we will likely get the 7010. This area still looks good for a long and for today we also have S1 and a key fib there.

Democrats win House but Republicans hold Senate | 7120 resistance 7050 support | Trading analysis
Democrats win House but Republicans hold Senate | 7120 resistance 7050 support | Trading analysis

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