EUR/USD Price Forecast – EUR/USD On Constant Fluctuations Above 1.14 Handle As US Election Results Hit Headlines

The EUR/USD pair has been in state of constant fluctuations across Asian market hours as US mid term election results started hitting headlines. The pair has found stable support around 1.14 handle but has been seeing steady up’s & down’s as election results from various parts of US hits headlines. The pair saw a sharp fall of over 70-pips in early Asian market hours from the session high of 1.1473 to 1.1398 on falling probability of the Democrats taking control of the House. A Democrat victory in House is seen constraining Trump administration and is, therefore, being treated as a dollar-negative outcome by markets. However news of analysts predicting probability of democrats taking control of house continuing to decline, resulted in US Greenback seeing rebound from sharp fall. As of writing this article, the EUR/USD pair is trading at 1.1463 up by 0.33% on the day.

US Election Headlines Are Expected to Influence High Level of Volatility Today

The probability of Democrats gaining majority and congress heading for a split is going up and down based on results of elections coming in from various zones and is likely to continue fluctuating until the final conclusive results are updated. However many investors and analysts continue to believe that there is a high chance for split congress post elections and it has resulted in fear of Democrats using the House majority to pursue investigations into Trump’s Russian ties and financial affairs while also making it difficult for  Republican-controlled Senate to pass any major new legislation. Thus the pair has turned range bound around 1.145 handle and is expected to continue slow range bound price action until conclusive election results are updated. When looking from technical perspective, the EURUSD pair is is breaking out of a falling wedge, indicating a bearish-to-bullish trend change as per data in daily chart.

The bullish pattern is backed by a positive cross between the 5-day and 10-day simple moving averages (SMAs), ascending (bullish) 50-, 100-, and 200-hour SMAs, and higher lows pattern on the hourly and 4-hour chart. The indicators are also biased toward the bulls. For instance, the MACD is rising on the 4-hour chart and the RSI is printing bullish levels above 60.00. The currency pair looks set to test the psychological level of 1.15 depending on influence from news based momentum inspired by US election results. The greenback is being offered across the board in Asia as Democrats Stephanie Murphy has won re-election to the US House in Florida’s 7th Congressional District according to news reports and there is high chance of Democrats regaining majority which would be huge dovish factor for US Greenback. Expected support and resistance for the pair are at