- The euro is rising strongly after six consecutive days of losses against the dollar.
- The EUR / USD pair is likely to remain volatile amid uncertainty about the outcome of the US elections.
The pair EUR/USD It hit a fresh five-day high during the US session due to the weak US dollar. It has risen to 1.1739 and is trading at 1.1725 on Election Day in the United States. The DXY is down 0.83%, trading at a six-day lows below 93.40.
The improvement in market sentiment could be seen when market participants deem a contested election outcome less likely that could result in a legal battle, political and social tension.
On Wall Street, the Dow Jones gained more than 650 points and the Nasdaq rose 2.25%. Gold and crude oil were also up 0.80% and 1.95%, respectively. US bond yields are rising, offering no support for the dollar.
The EUR / USD rally continues despite the EUR / GBP falling on risk appetite and after Reuters reported that the European Central Bank’s Pandemic Emergency Purchase Program (PEPP) will likely remain the main instrument for increase encouragement at the next meeting.
From a technical perspective, the EUR / USD maintains a clear bullish tone. Immediate resistance is seen at the 1.1745 area, followed by 1.1760. On the downside, 1.1715 is now immediate support and then comes 1.1675 (20 hour moving average).
Volatility in financial markets is likely to remain high. The first polls in the US will close at 6 pm ET.
Credits: Forex Street
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