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  • EUR/USD is mildly bid alongside moderate gains in the US stock futures. 
  • The risk of contested US elections is likely to keep gains in check. 
  • The resurgence of coronavirus favors losses in the EUR. 

The buoyant mood in the US stock futures is helping EUR/USD regain poise after a six-day losing streak. However, big gains are likely to remain elusive on account of the US election uncertainty and resurgence of coronavirus. 

Nears 100-day SMA

Having printed a low of 1.1622 in the overnight trade, the pair is now closing on the 100-day simple moving average (SMA) hurdle at 1.1660. 

The haven demand for the dollar has weakened in the wake of a 0.66% rise in the S&P 500 futures. The dollar typically attracts bids during risk-off and vice versa. The risk sentiment has improved somewhat possibly in response to polls predicting a Biden victory. The Democratic presidential candidate Joe Biden is likely to unveil a bigger fiscal stimulus upon victory than his Republican counterpart Presidential Donald Trump. 

That said, some still fear that the election results could be contested, leading to a protracted period of uncertainty. As such, caution is likely to persist at least for the next 24 hours, capping the gains in the EUR. 

Also, the decision by the major Eurozone nations to impose the economically-painful lockdown restrictions to contain the second wave of the coronavirus is likely to keep the bulls at bay. 

Data wise, the Eurozone economic calendar is light. In the US session, the focus would be on the US factory orders. 

At press time, the pair is trading at 1.1652, having declined from 1.1860 to 1.1622 in the past six trading days. 

Technical levels