Details of the economic calendar from November 7

Monday was usually accompanied by an empty macroeconomic calendar. Important statistics in Europe, the United Kindom, and the United States were not published.

In this regard, investors and traders monitored the incoming information and news flow.

Analysis of trading charts from November 7

The downward price gap for the EURUSD pair was successfully closed by buyers. As a result, there was a prolongation of Friday's upward cycle, which eventually led the quote to the area of the parity level.

The GBPUSD currency pair, like the euro, managed to close the downward gap at the start of a new trading week. As a result, there was a subsequent inertial move, which pushed the quote to the upper border of the area of interaction of trade forces 1.1410/1.1525.

Economic calendar for November 8

The midterm congressional elections will take place today. The House of Representatives and a third of the Senate will be re-elected. At the moment, Democrats are in the lead in the lower house, but it is predicted that Republicans will take the majority in this election. The situation with the Senate is less predictable, since out of 35 vacant seats, 21 now belong to the Republicans. If they manage to take the majority here, it will seriously weaken the position of the current Joe Biden administration.

The victory of the Republicans will lead to heavy clashes in terms of promoting legislative initiatives of the White House.

Market reaction to the elections?

If the Republicans win, characteristic uncertainty may arise, which will lead to a sell-off of the US dollar.

The Democrats' victory may support the US dollar for a while, because everything remains conditionally unchanged in the government.

Trading plan for EUR/USD on November 8

In this situation, the area of the parity level can serve as a boundary zone along which the quote can form an amplitude. It is worth noting that this is a local manifestation of the price and new speculative price jumps are expected soon.

As for price movements, if the price goes above 1.1050, it may lead to an update of the local high in October. While holding the price below 0.9950 may lead to a move towards 0.9900–0.9850.

Trading plan for GBP/USD on November 8

Such an intense upward move during the two trading days led to a reasonable technical signal about the overbought pound sterling. As a result, the value of 1.1525 plays the role of resistance, relative to which a price pullback occurred. Presumably, market participants will focus on the borders of the area of interaction of trade forces for some time since the main movement will arise on the basis of the information flow of the United States. In this case, we are talking about the US elections.

What is shown in the trading charts?

A candlestick chart view is graphical rectangles of white and black light, with sticks on top and bottom. When analyzing each candle in detail, you will see its characteristics of a relative period: the opening price, closing price, and maximum and minimum prices.

Horizontal levels are price coordinates, relative to which a stop or a price reversal may occur. These levels are called support and resistance in the market.

Circles and rectangles are highlighted examples where the price of the story unfolded. This color selection indicates horizontal lines that may put pressure on the quote in the future.

The up/down arrows are the reference points of the possible price direction in the future.