Clearly 2016 will be closing with a Bang!

US elections coming up in early Nov, and possible US interest rate hike in December setting the stage for fireworks in the markets!

So let's take a look at some USD-dominated markets to get a feel for things in the coming months.

USDx

Let's begin with the USDx to frame some context for the US dollar.

There is clear strength on the dollar, however it has just cleared a previous swing high and I would like to observe whether it can hold up here or get rejected.

The US elections are coming up soon, so maybe the US will hold its ground in this area for a while before deciding where to go.

Seasonally, USDx tends to form a high in late November, so we could still see some further upside until then.

With this context, let's take a look at some other markets.

Gold

Gold slipped down to these levels in one day, the USDx took a few days to cover the ground and strengthen.

There is a case for Gold heading higher to test 1277 and possibly 1300.

This would be in-line with the broader bearish seasonal outlook.

However, there is the shorter term bullish momentum of the USD to consider, so we could see below 1241 first before any move higher.

Crude Light

In previous posts, Oil was expected to tested $50 before moving on its way to $56 and possibly above $60.

Currently we are having some trouble with the $51 level.

A weaker USD would provide a push up towards the $56 or $60 levels in the longer term.

So any strength in the USD would provide a buying opportunity, possibly around $46.

USDSGD

With the recent drop in our GDP, it is expected for SGD to be weak.

The USDSGD has been on a strong move higher.

We are approaching our first area of selling interest should USD strength continue, around 1.4000.

However, I do not think we will break above 1.42 easily, so be prepared for a rough ride.

On USD weakness, we should see 1.37 again at least.

So overall, prices in other markets seem to paint the picture of a stronger USD followed by possible longer term weakness, in-line with the seasonals.

But with the 2 major events, US presidential elections and possible US interest rate hike, anything could happen!

Keep your eyes open and good trading folks!

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