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  • The EUR/USD is comatose around 1.14 ahead of the US midterm elections.
  • Markets are pricing a split congress.
  • A Republican majority in both houses could bode well for the USD.

The EUR/USD is flatlined around 1.14 and may revisit the recent low of 1.13 if the Republicans secure a majority in both chambers.  

To start with, the markets are pricing a split Congress – Democrats to take House and Republicans to retain the Senate.

As a result, a Republican majority in both houses may embolden Trump to pursue more aggressive nationalist and isolationist policies. Hence, the USD could pick up a bid, although the EUR/USD may defend the key support of 1.13 as Trump has little room for a further fiscal splurge.

On the other hand, a Democrat majority in both chambers would also be a surprise and could trigger a political turmoil in Washington, leading to risk aversion and losses in the USD. As a result, the EUR/USD could beat the upper edge of the wedge, confirming a bearish-to-bullish trend change.

EUR/USD Technical Levels

EUR/USD

Overview:
       Last Price:  1.1403
       Daily change:  -5.0  pips
       Daily change:  -0.0438%
       Daily Open:  1.1408
Trends:
       Daily SMA20:  1.1456
       Daily SMA50:  1.1563
       Daily SMA100:  1.1587
       Daily SMA200:  1.1862
Levels:
       Daily High:  1.1424
       Daily Low:  1.1353
       Weekly High:  1.1456
       Weekly Low:  1.1302
       Monthly High:  1.1625
       Monthly Low:  1.1302
       Daily Fibonacci 38.2%:  1.1397
       Daily Fibonacci 61.8%:  1.138
       Daily Pivot Point S1:  1.1366
       Daily Pivot Point S2:  1.1324
       Daily Pivot Point S3:  1.1296
       Daily Pivot Point R1:  1.1437
       Daily Pivot Point R2:  1.1466
       Daily Pivot Point R3:  1.1507