EURUSD Technical Analysis – The greenback loses ground heading into the election

Fundamental
Overview

The US Dollar started the
week on the backfoot as the odds of a Harris victory jumped higher leading to a
pullback in the Trump’s trades.

Everything hinges on the US
election now with a red sweep seen as the most bullish scenario for the
greenback, while a blue sweep as the most bearish.

The price action will
likely be choppy until we start to get a better sense of who’s going to win, so
the best strategy would be to wait for the results, because the trend that will
be set will likely last for months anyway.

EURUSD Technical
Analysis – Daily Timeframe

On the daily chart, we can
see that EURUSD bounced off of the key swing level at 1.0777 as the buyers
stepped in with a defined risk below the level to position for a pullback into
the 1.10 handle. The sellers will want to see the price breaking below the
swing level to increase the bearish bets into the 1.06 handle next.

EURUSD Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can
see that we have a minor upward trendline defining the current bullish momentum
on this timeframe. The buyers will likely lean on the trendline to keep
targeting new highs, while the sellers will look for a break lower to position
for the break below the key 1.0777 level.

EURUSD Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can
see more clearly the recent price action with higher highs and higher lows
indicating a bullish trend. There’s not much else we can add here as the
election noise will likely lead to a choppy price action until we get the results.
The red lines define the average daily range for today.

Upcoming
Catalysts

Today is the US Presidential Election Day but we will also get the US ISM
Services PMI report. On Thursday, we have the US Jobless Claims and the FOMC
Policy Decision. On Friday, we conclude the week with the University of
Michigan Consumer Sentiment report.

This article was written by Giuseppe Dellamotta at www.forexlive.com.