The EUR/USD currency pair
- Prev Open: 1.0016
- Prev Close: 1.0072
- % Chg. for the Last Day: +0.56
The preliminary results of the US Congressional election show a substantial Republican lead. This suggests that the US may be close to a government split. This could lead to an increase in the dollar index. The new Congress will want the US Federal Reserve and to address inflation quicker. Republicans are open to a recession but only if it happens quickly. So, the US Fed might return to stimulative measures for the economy if inflation starts to drop.
- Support levels: 1.0012, 0.9946, 0.9838, 0.9794, 0.9755, 0.9702, 0.9601
- Resistance levels: 1.0111, 1.0162, 1.0230
Technically speaking, the EUR/USD currency pairing’s hourly trend is bullish. The price trades above the moving averages. MACD is positive but there is divergence. This is indicative of weakness by buyers and approaching a corrective move. Under such market conditions, buy trades should be considered from the support level of 0.9946 or 0.9838, but with…