EUR/USD trims gains and returns to 1.1440

• The pair keeps correcting lower from recent peaks beyond 1.1470.
• The greenback manages to rebound from lows near 95.90.
• US mid-term elections showed a divided Congress, as expected.

The upside momentum in the European currency is losing some traction on Wednesday, motivating EUR/USD to retreat from earlier peals in the vicinity of 1.1480.

EUR/USD gains capped near 1.1480

Spot moved higher to fresh multi-day tops in response to a moderate drop in the greenback following the results from the US mid-term elections.

As expected, the Democrats regained control of the House of Representatives, while the Senate will remain under Republican’s control. Following the elections, yields of the key US 10-year noted dropped to sub-3.0% level, dragging the greenback to fresh lows near 95.90 when tracked by the US Dollar Index.

In the data space, German Industrial Production expanded at a monthly 0.2% in September, surpassing consensus. Later in the day, EMU’s Retail Sales are also due. Across the pond, the only release of note will be the weekly report on US crude oil supplies by the EIA.

EUR/USD levels to watch

At the moment, the pair is up 0.22% at 1.1451 facing the next hurdle at 1.1473 (high Nov.7) seconded by 1.1508 (low May 29) and finally 1.1550 (high Oct.22). On the downside, a break below 1.1372 (low Nov.2) would target 1.1334 (low Oct.26) en route to 1.1316 (200-week SMA).