U.S. President elect, Donald Trump’s press conference today
The U.S. President elect, Donald Trump will be hosting his first official press conference today at 1500 GMT. Today will be the first time the controversy courting president-elect will be speaking and the markets will no doubt be paying close attention. So far the Trump Rally has been strong with bonds selling off sharply after the elections in November last year. The market speculation has been strong and shows signs of strength with the U.S. dollar seen holding on to its gains and staying firm above the 100.00 level.
Investors and traders alike will be closely watching the press conference today
The hopes are that the president-elect will make some references to the proposed fiscal spending plans that he promised during the election campaign period. So far, Trump has been steady in maintaining his election campaign promises, especially on Mexico and jobs. Recently he reiterated on the proposed wall near the Mexican border and has so far managed to keep companies from moving jobs to Mexico.
The U.S. dollar which was showing signs of weakness has currently formed interim support near 103 – 103.50 levels. A technical rebound of this level could signal further upside in prices, with Trump’s press conference likely to be a catalyst.
How to trade binary
AUDUSD has been posting strong gains with prices seen reversing over 50% of the declines since early December 2016. Price action is currently seen moving into the resistance level of 0.7405 - 0.7382. A reversal here on the intraday charts could signal near term declines to 0.7245 where price correction is pending.
From a technical outlook, look to purchase daily PUTs near 0.7405 - 0.7382 for a 21:00 GMT expiry time in anticipation that Trump's press conference will be bullish for the U.S. dollar. The pending technical correction to 0.7245 is likely to see a short term move in prices. Alternately, an intraday close above 0.7405 could invalidate this bearish outlook and it is suggested to stay on the sidelines.
Target price: 0.7405
Expiry: 21:00 GMT