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US Election Excitement Hitting the US Dollar EURUSD GBPUSD AUDUSD

November 3, 2020 10:45 AM

US Election Excitement Hitting the US Dollar: EUR/USD, GBP/USD, AUD/USD

Today is the day some people have been waiting 4 years for:  The US Presidential Election.  Stock traders seem confident about the election and the bid is making its presence felt as the US Dollar is lower on the day.  Make sure to see our full election coverage and follow our live blog this evening for up to the minute analysis and market reaction to the results!

EUR/USD

The EUR/USD held the lows from September 28th yesterday near 1.1610 and have since retraced to the 38.2% Fibonacci retracement level from the October 21st highs to yesterdays lows near 1.1715.  There is also horizonal resistance near this level.  Price has moved to the 50% retracement level near 1.1750, which is mid-range, before the election results are known.  If EUR/USD reverses and moves lower, price can test yesterday’s lows near 1.1620.

Source:  Tradingview, City Index

GBP/USD

GBP/USD put in a false breakdown below horizontal support near 1.2910 and today broke out to the topside of a descending triangle.  The pair retraced has nearly 61.8% of the move from the highs of October 21st to yesterday’s lows near 1.3055. Next resistance area is back at the recent highs near 1.3175! Watch the important psychological area at 1.3000 for support.  Next support is down at the trendline of the descending triangle near 1.2950.  Also, be on the lookout for Brexit headlines which could cause extra volatility in the pair.

 Source:  Tradingview, City Index

AUD/USD

After the RBA was “as expected” earlier, price held the important .7000 level and busted through horizontal resistance near .7100.  AUD/USD is trying to break out above a downward sloping trendline of a descending triangle and horizontal resistance near .7150.  If price does break higher, next resistance is at .7250.  Support is at .7100, then overnight horizontal support near .7070. 

Source:  Tradingview, City Index

Going into the election results this evening,  it’s not a surprise US Dollar pairs are at mid-range or at resistance.  These pairs may not have much more upside as the evening approaches.  Traders may square up positions heading into the results release, if they aren’t already.

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