EUR / USD rises to test October highs near 1.1880

  • EUR / USD advances on dollar weakness, DXY at two-month lows.
  • USA: Uncertainty about elections continues, the October employment report is coming.

The EUR / USD is rising for the fourth day in a row and is trading at 1.1874, the highest level since October 21. It is close to 1.1880 where the October highs are and if it exceeds that area it would reach highs in two months. The weakness of the dollar remains the key factor.

The dollar index is trading at its lowest since September. The biggest drops in the dollar are against the euro, the Swiss franc and the yen. Wall Street futures are trading negative, but the EUR / USD rally is still strong.

The presidential election is still undefined but Biden seems to be closer to the White House, Y Trump further from acknowledging the possible defeat, according to what he said on Thursday indicating that with the “legal votes” the winner is him. The most important news of the last hours is that Biden passed to the front in the state of Georgia by less than 1000 votes, in an election where more than five million votes have been counted. If this trend is confirmed, it would be an insurmountable blow to Trump’s aspirations.

In addition to the elections, the focus is on the October employment report to be released at 13:30 GMT. Non-farm payrolls are estimated to increase by 530,000 and the unemployment rate to decline to 7.7%.

Technical overview

The EUR / USD is testing October highs at the 1.1880 zone and maintains strong and firm bullish bias. The break of that level would expose 1.1900. The next resistance is seen at 1.1920.

A pullback below 1.1835 would remove some of the strength from the euro. Strong support below 1.1800 is seen around 1.1770 / 75, a horizontal level and where several relevant moving averages are passing.

The risk in the pair is biased to the upside, while a reversal from these levels would be a strong negative sign, favoring the continuity of the range, which is supported by 1.1600.

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Credits: Forex Street

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