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  • Polling website FiveThirtyEight is reporting that the Congress is heading for a split as expected.
  • That outcome is seen leading to policy paralysis and political turmoil in Washington.
  • The EUR/USD has risen back to 1.1430.

The EUR/USD has bounced off the 200-hour exponential moving average (EMA) of 1.14 and is currently trading at 1.1438.

The dollar is being offered again as Congress is likely heading for a split. The likelihood of the Democrats winning the House has jumped back to 70 percent, according to polling website FiveThirtyEight. Meanwhile, the Republicans are likely to retain the Senate.

A Democratic-controlled House  paired with a Republican-controlled Senate would mean President Donald Trump and the GOP would have a hard time enacting any major new legislation.

Further, it is feared that the Democrats would use the House majority to pursue investigations into Trump’s Russian ties and financial affairs. No wonder, the greenback is  losing altitude.

The EUR/USD is breaking out of a falling wedge, indicating a bearish-to-bullish trend change.

EUR/USD Technical Levels

EUR/USD

Overview:
       Last Price:  1.1439
       Daily change:  21  pips
       Daily change:  0.184%
       Daily Open:  1.1418
Trends:
       Daily SMA20:  1.1453
       Daily SMA50:  1.1557
       Daily SMA100:  1.1586
       Daily SMA200:  1.1857
Levels:
       Daily High:  1.1438
       Daily Low:  1.1392
       Weekly High:  1.1456
       Weekly Low:  1.1302
       Monthly High:  1.1625
       Monthly Low:  1.1302
       Daily Fibonacci 38.2%:  1.142
       Daily Fibonacci 61.8%:  1.1409
       Daily Pivot Point S1:  1.1394
       Daily Pivot Point S2:  1.1369
       Daily Pivot Point S3:  1.1347
       Daily Pivot Point R1:  1.144
       Daily Pivot Point R2:  1.1462
       Daily Pivot Point R3:  1.1487