EUR/USD pushes higher above 1.14 as DXY shows volatility ahead of first exit polls

• First exit polls are expected at 23:00 GMT.
• US Dollar Index edges lower in the last hour.

The EUR/USD pair gained some traction in the last hour and rose to the 1.1430 area as markets are nervously waiting for the midterm election exit polls. As of writing, the pair was trading at 1.1422.

Earlier on Tuesday, markets largely ignored the macroeconomic data releases from the United States and the US Dollar Index, which tracks the greenback against a basket of six major currencies, spent the NA session in a tight range around its daily opening level of 96.30 to reflect the investors’ indecisiveness. At the moment, the DXY is down 0.7% on the day at 96.25.

There are 35 Senate races tonight with and Democrats need to claim 26 of those to claim the majority in the House. Although it’s unclear how the midterm results could impact the economic growth in 2019, the greenback could come under pressure if Republicans lose the control of the House.

Live coverage:  High uncertainty around the US Mid-term Elections set to rock the US Dollar.

Reporting on the survey that it conducted with more than 100,000 voters, “A majority of voters overall say the country is headed in the wrong direction. Still, about two-thirds say economic conditions are good,” the Associated Press said. “With control of the Senate and the House of Representatives at stake, Trump encouraged voters to view the first nationwide election of his presidency as a referendum on his leadership.”

Technical outlook

“After a few days of excitement, EUR/USD got stuck in a narrow range. The narrowing wedge, or triangle, does not usually last for too long. But where will the pair go?” FXStreet Chief Analyst Valeria Bednarik questions and determines the below-seen technical levels.

“On the upside we note: 1.1455, 1.1495, 1.1550, and 1.1620.”

“On the downside we see: 1.1395, 1.1355, 1.330, and the critical double bottom at 1.1300.”