EURUSD falls back to the 1.0030 area on dollar strengthening

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  • The dollar gains moment before the American session.
  • Elections in the US: still without definitive results.
  • EURUSD falls after three consecutive rises, remains above parity.

After trading in a range for hours, near the monthly highs, EURUSD broke below 1.0050 and fell to 1.0032, the new low of the day. It then bounced back and is trading around 1.0045, with a negative intraday bias, holding on to much of the recent gains.

The euro lost ground after rising for three days in a row against the dollar. EURUSD hit as high as 1.0096, the intraday high in two months. The weakness of the dollar was the main factor behind the rise in the pair. In the last hour, the greenback gained momentum and recovered, but the sustainability of this movement is not clear.

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In the USA they were held midterm elections. For now, the big news is that the overwhelming Republican victory did not take place. Several benches remain undefined and this could take days or weeks. The House of Representatives would remain for the Republicans and the Senate in a tie or with a Democratic majority.

The key data of the week will be on Thursday with the Consumer Price Index for October, which is expected to show an increase of 8% year-on-year and an advance of 0.7% monthly. These numbers can have a big impact.

over 1,0000

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The EURUSD pullback has been moderate so far. Losing 1.0030 would expose next support at 1.0000/05 and then 0.9965. In the opposite direction, now 1.0050 is the first resistance, followed by 1.0095/1.0100. A break above 1.0100 would enable further rallies.

Technical levels

Source: Fx Street

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