The US Congress Elections begin today and will be wrapped up by tomorrow morning EU time.
I personally believe that we could see good market movements during this event and I am already positioning myself to take moderate risks on the trade ideas I have come across.
The first one is on EURJPY, a pair that has been making me good Monday yesterday and today.
I released plenty of updates on my instagram page and my trading room about this one, I normally don't like predicting moves in the future but it seems as if this one is a valid one.
Before I get ahead of myself, let me talk about the US congress elections for a min.
So voting will begin today for the mid-term congress elections and the results should be completed probably in the Wednesdays Asian trading session.
Expectations are that the congress results will remain divided but I don't believe that this will happen as these expectations are usually wrong, and the way to make money in the markets is to trade against the "herd".
I currently have 3 trades currently,
1. EURJPY buy, buying and then preparing to sell the pair
2. EURUSD buy, trading a reversed head and shoulders and weakness of the USD due to the elections
3. USDJPY sell, trading a double top and the fact that safe haven assets should move higher in the late US trading session or tomorrow's Asian session.
Now, lets go over the 2 possible outcomes of these elections.
1. The most expected scenario is that Congress will remain divided, this means that probably the markets will not move by much.
This will result in Trump not being able to push his domestic policy and will have to focus on foreign policy as he is now (trade wars etc..)
2. In case the Republicans take both chambers, it would allow Trump to push even harder towards the America he wants.
This means that Trump and his team will have a very good shot at passing new laws such as the tax reform everyone is waiting for...
In anycase, my charts are telling me the USD will be weak, only time will tell... but I like to go out on the limb and tell you what I am going to do rather then show you what I did...
Honesty and transparency is the path I am walking on now.
My Trading Strategy
In this video I explain what I am trading and why I am trading it.
The US Congress elections can bring volatility in the markets, and that means trading opportunities.
The video explains my trading strategy.