- US-Iran trade tensions-led risk-off keeps US dollar broadly underpinned.
- Eurozone November Sentix investor confidence drops to 8.8 vs. 10.1 expected.
Having failed several attempts to regain the 1.14 handle, the EUR/USD pair returned to the red zone and hit fresh daily lows at 1.1375 amid a pick-up in buying interest in the US dollar across the board.
The cautious tone on the European equity markets, reflected by the increased nervousness heading into the US mid-term election and US-Iran geopolitical tensions, helped put a bid under the greenback.
In the view of Omkar Godbole, FXStreet’s in-house analyst, “a Republican majority in both chambers will reinforce Trump’s nationalist and isolationist policies. As a result, the greenback may pick up a bid of the Trump rally witnessed after November 2016 Presidential election results.”
More so, a bigger-than-expected drop in the Eurozone investor confidence gauge also weighed further on the common-currency while the uncertainty over the Italian budget keeps any recovery in the spot limited.
All eyes now remain on the US mid-term elections exit polls for fresh dollar trades that is likely to have a major impact on the EUR/USD pair. In the meantime, the US ISM non-manufacturing PMI release will be eyed for fresh trading opportunities.
EUR/USD Technical levels to watch
Immediate resistance is seen near the 1.1400 (round number), above which the pair is likely to test the 1.1458 (Nov 2 high). To the downside, the key 1.1350 level is seen an immediate support, below which the bears will target 1.1306 (Nov 1 low) and 0.1.1250 (psychological levels).
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