EUR/USD continues scaling higher, taps 1.15 mark amid notable USD supply

   “¢   The USD continues to be weighed down by the US midterm elections results.
   “¢   Sliding US bond yields/risk-on mood does little to ease the USD bearish pressure.    “¢

The EUR/USD pair continued scaling higher through the mid-European session and touched the key 1.1500 psychological mark, or over two-week tops in the last hour.

The US Dollar came under some intense selling pressure after official results showed that Democrats secured the needed 218 seats to gain control of the US House of Representatives, with the Republicans maintaining their majority in the Senate.

The outcome of a split US Congress fueled speculations that any major US fiscal policy boot to the economy is unlikely for now and turned out to be a bearish catalyst for the greenback, which was eventually seen driving the pair higher.

Meanwhile, the ongoing slide in the US Treasury bond yields, coupled with the prevailing risk-on mood did little to ease the strong bearish sentiment surrounding the USD and remained supportive of the pair’s strong bullish momentum.

It, however, remains to be seen if bulls are able to maintain their dominant position or the positive move runs into some fresh supply at higher levels amid Italian budgetary concerns, especially after the EU threatened with sanctions if Italy’s coalition government refuses to change the planned 2019 budget.

Technical levels to watch

On a sustained move beyond the 1.1500 handle, leading to a subsequent breakthrough the 1.1515-20 supply zone is likely to accelerate the up-move further towards reclaiming the 1.1600 round figure mark.

On the flip side, any meaningful retracement now seems to find support near the 1.1470-60 region and is followed by late Asian swing low level of 1.1430 ahead of the 1.1400 round figure mark.