EUR / USD Current Price: 1.1830
- The US presidential election remains indefinite and may take a few more days.
- The US Federal Reserve left its monetary policy unchanged as expected.
- EUR / USD is technically bullish and could advance well above the 1.1900 level.
Financial markets revolved around the headlines of the U.S. election again, as Joe Biden edged closer to victory, and U.S. President Donald Trump announced his party would legally challenge the results of multiple states, alleging fraud. Stocks continued to climb despite the turmoil, with US indices adding more than 2% each intraday. The dollar fell across the board and EUR / USD hit 1.1859, breaking away from the peak in US trading hours, while retaining substantial gains.
Macroeconomic data has remained in the background, ignored. Nonetheless, Germany released factory orders in September, which were up 0.5% MoM, missing market expectations. The EU released September retail sales, which were down 2% for the month, worse than expected. As for the United States, they offered initial jobless compensation claims, which increase by 751K, worse than the expected 732K. Challenger layoffs in October rose to 80,666K. Non-farm productivity advanced 4.9% in the third quarter, slightly less than expected.
In addition, the US Federal Reserve made its monthly monetary policy announcement, keeping rates on hold as widely anticipated. The minutes were slightly more optimistic than the previous ones, although there was no significant change. Once again, Powell called for a fiscal stimulus, which increased pressure on the greenback. This Friday, the United States will release employment figures for October. The non-farm payroll report is expected to show that the economy has added 600,000 jobs, while the unemployment rate is expected to drop from 7.9% to 7.7%.
Short-term technical outlook EUR / USD
EUR / USD is trading at the upper end of its daily range around 1.1820, maintaining its bullish bias. The 4-hour chart shows that it has passed all of its moving averages, with the 20 SMAs advancing, albeit below the larger ones. Technical indicators remain in positive territory after correcting overbought conditions. The 1.1870 level is the immediate resistance level with the pair poised to break through 1.1900 once above. The bulls defend the decline around 1.1790.
Support levels: 1.1790 1.1750 1.1710
Resistance levels: 1.1870 1.1915 1.1960
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