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The EUR/USD pair surged to 1.1717, now trading a few pips below the level, as the market is dumping the greenback ahead of the US presidential election result. Unless there is a substantial bias in the first results, risk-off will likely lead the way, according to FXStreet’s Chief Analyst Valeria Bednarik.

Key quotes

“The most likely and worrisome scenario is that the final result of the election won’t be clear in the near-term. Some speculate that the new US president won’t be known until the end of the month, which means mounting tensions and risk aversion will be leading the way in dollar’s favor.” 

“The dismal mood may escalate if President Donald Trump fulfills its promise of taking legal action to force an outcome within the next 24 hours. For sure, interesting times are coming to the financial markets and extreme volatility is to be expected.”

“The EUR/USD pair has limited bullish potential in the near-term as it would need to advance at least beyond 1.1770. The 4-hour chart shows that it has accelerated north above a bearish 20 SMA, while still below the larger ones. Technical indicators have recovered above their midlines but without strength enough to support additional advances.”