EUR/USD Forecast: Technically Bullish, May Advance Well Above The 1.1900 Threshold

EUR/USD Current Price: 1.1830

• US presidential election remains undefined and may take some more days.
• The US Federal Reserve left its monetary policy unchanged as widely anticipated.
• EUR/USD is technically bullish, may advance well above the 1.1900 threshold.

Financial markets gyrated once again around the US election’s headlines, as Joe Biden moved closer to win the election, and US President Donald Trump announced his party would legally challenge several states’ results, claiming fraud. Stock kept roaring higher despite the turmoil, with US indexes adding over 2% each intraday. The dollar fell across the board, and EUR/USD hit 1.1859, easing from the high in US trading hours, although retaining substantial gains.

Macroeconomic data remained in the background, ignored. Nevertheless, Germany published September Factory Orders, which were up 0.5% MoM, missing the market’s expectations. The EU released September Retail Sales, which were down 2% in the month, worse than anticipated. As for the US, it offered Initial Jobless Claims, which rise by 751K, worse than the 732K expected. Challenger Job Cuts in October decreased to 80.666K. Nonfarm Productivity advanced 4.9% in Q3, slightly worse than anticipated.

Also, the US Federal Reserve made its monthly monetary policy announcement, keeping rates on hold as widely anticipating. The Minutes were slightly more optimistic than the previous ones, although there was no significant change. Once again, Powell called for fiscal stimulus, which added pressure on the greenback. This Friday, the US will publish October employment figures. The Nonfarm Payroll report is expected to show that the economy added 600K positions, while the unemployment rate is foreseen declining from 7.9% to 7.7%.

EUR/USD Short-Term Technical Outlook

The EUR/USD pair is trading at the upper end of its daily range around 1.1820, maintaining its bullish bias. The 4-hour chart shows that it has broken above all of its moving averages, with the 20 SMA advancing, although below the larger ones. Technical indicators remain well into positive territory after correcting overbought conditions. The 1.1870 level is the immediate resistance level, with the pair poised to break above 1.1900 once above it. Bulls are defending the downside around 1.1790.

Support levels: 1.1790 1.1750 1.1710

Resistance levels: 1.1870 1.1915 1.1960

View Live Chart for the EUR/USD

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