Anyone else feeling a strong sense of anticipation mounting across FX markets as the US Presidential election looms?

Over the past few weeks, most major currencies (excluding the Pound) have struggled for direction as investors remained on the side-lines ahead of the massive risk event on November 3rd.

According to Polls, Democrat challenger Joe Biden is currently leading Donald Trump. Whatever the outcome, the US election result will certainly have a lasting impact on currency markets.

Since most major currencies have found comfort within tight ranges, this may present some technical breakout/down opportunities in November.

Today, we will be focusing on the weekly charts for our technical setups are the setups discussed are longer term.

EURUSD yearns for freedom

Looking at the EURUSD on the weekly channel, it resembles a caged beast that yearns for freedom.

Minor support can be found around 1.1700 and minor resistance around 1.1190. Significant levels of interest remain around the 1.1610 higher low and 1.2000 psychological resistance. Prices remain bullish on the weekly timeframe as long as the 1.16100 proves to be reliable support. Should the EURUSD break above 1.1900 and attack 1.2000, this may open the doors towards levels not seen since April 2018 around 1.2250.

GBPUSD remains in an uptrend

Despite all the gloom, doom and drama around Brexit, the GBPUSD still remains in an uptrend on the weekly charts. There is a suspicion that the positive Pound’s performance could be attributed to Dollar weakness. However, technicals are suggesting that bulls remain in control as long as prices can keep above the 1.2650 support level.

Last week the Pound was injected with a renewed dosage of confidence as fears of a no-deal Brexit slightly eased on encouraging comments from the EU’s chief negotiator. Looking ahead, the GBPUSD could extend its tentacles back towards 1.3200 if 1.3000 proves to be reliable support.

However, a breakdown below 1.3000 may open the doors back towards 1.2850 and 1.2650, respectively.

USDJPY breakdown in the making?

It is safe to say that the USDJPY remains in a downtrend on the weekly charts as there have been consistently lower lows and lower highs. Over the past few weeks, it has been the same old story with the currency pair oscillating within a range. However, prices are slowing approaching a significant support level that could open the doors to further downside.

A solid weekly close below 104.00 could trigger a selloff towards 102.40. However, should prices break back above 105.00, the USDJPY has the potential to rally back towards 106.50.

It must be kept in mind that due to the nature of the Japanese Yen as a safe-haven currency, its outlook may be influenced by the US Presidential election on November 3rd.

AUDUSD descending triangle…

A descending triangle technical formation can be seen on the weekly timeframe.

If the 0.7000 proves to be unreliable support, this could signal a decline towards 0.6780. A breakout above 0.7250 may signal a move towards the 0.7500 level.