1. Abstract:

The financial markets will move after the federal elections this week.
This could be a nice opportunity for seasonal traders and experienced people who likes the big risk.
I want to explain my opinion and suggested directions to trade after this event, knowing that this analysis is made on Saturday and maybe
the release of this information can be available on Thursday or even Wednesday next week.

Most important is to get involved or trade with low risk because the high volatility could happen. The bad thing with that is any stop may
support it and a big loss could carry out or even pending orders could not been filled.

2. Development:

What to trade and why ? well, based on my research could be YEN pairs because the DAX is the correlated security for this currency Forex pair and because this kind of event and EUR/USD because high liquidity.
I will use an SMA(200) and key levels of Fibonacci retracement and the daily chart.

2.1 GBP/JPY Analisys:

As you can see the big picture of this pair, is making higher highs and higher lows. Also seems to be in a channel up.
I did create a projection using Fibonacci levels taking the key numbers.
With this I will create a forecast to manage entries based on sell on rallies and buy on deeps.

This kind of pair usually moves big, so a move of 300 pips is easy.
So, I think the best is to find a spot around 61% and 38% using internal levels and extensions.
Below you can see the numbers and possible areas of interest.

2.2 EUR/USD Analysis:

The range of this pair could be about 150 pips, but with this kind of event maybe more.
The economy on the EURO has been climbing since the January of this year.
I think the next week maybe we could see a move to reach the next key level of 161% (1.24)


The same situation, below you can see the numbers and projections to this pair.

3. Conclusions:

  • Looking at the charts, a big correction seems to be going to happen the next month because the gap between the price and the simple moving average is too big.
  • To trade one of this pairs seems to be good investment, but to wait could be safe to avoid big looses.
  • Gaps usually appears after any political situation, so this event maybe we can see a big gap.
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