Search ForexCrunch
  • EUR/USD leaves behind the recent pessimism and retakes 1.1670.
  • European markets opened Tuesday’s session with decent gains.
  • US presidential elections will be the salient event on Tuesday/Wednesday.

After bottoming out in the vicinity of the 1.1600 mark, EUR/USD appears to have met some buying interest and advances to the 1.1670 area, or 2-day highs.

EUR/USD focused on US elections

EUR/USD posts decent gains in the wake of the opening bell in Euroland on Tuesday and reversing at the same time five consecutive daily pullbacks.

Spot looks bid in the European morning on the back of renewed selling pressure around the greenback and amidst rising cautiousness ahead of the US presidential elections.

 

 

It is worth noting that a Democrat win is perceived as a negative event for the dollar, as fresh fiscal stimulus appears more likely as well as a different approach to the ongoing US-China trade conflict, all rendering in a better scenario for the risk complex.

Event wise in the Old Continent, the Eurogroup (virtual) meeting will take centre stage amidst an empty docket. Across the pond and apart from the elections, Factory Orders, the IBD/TIPP Index and the API’s weekly report are all due.

What to look for around EUR

EUR/USD manages to pick up pace after visiting the proximity of the 1.16 area in past hours. Despite the move lower, the outlook on EUR/USD still remains positive and so far propped up by auspicious results from domestic fundamentals (despite momentum appears somewhat mitigated in several regions), although the now more dovish stance from the ECB somewhat limits a serious rebound in the pair. As usual, the euro still looks supported by the solid position of the EMU’s current account.

EUR/USD levels to watch

At the moment, the pair is up 0.25% at 1.1670 and a breakout of 1.1782 (55-day SMA) would target 1.1880 (monthly high Oct.21) en route to 1.1917 (high Sep.10). On the flip side, the next support is located at 1.1622 (monthly low Nov.2) followed by 1.1612 (monthly low Sep.25) and finally 1.1495 (monthly high Mar.9).