The European currency declined against the US dollar on Wednesday and hit a low of 28th of October. Although in the first half of the day euro reached highs of September, in response to a very unexpected US presidential election results.
Republican candidate Donald Trump was elected as a new head of USA; he won 279 electoral votes while needed only 270. The result was shocking, since in almost all preliminary ratings Clinton occupied the leading position, and the gap only slightly narrowed over the last two weeks before the election.
With Trump victory many analysts have expressed fears that the Fed may revise the vector of monetary policy. In particular, it was assumed that the rate in December may not be increased, so on the futures market the probability of growth fell to 66.8% from 76.3% the previous day. However, the representative of the Federal Reserve Williams calmed markets. Williams said he was confident in the future independence of the Fed, and all proposals for limiting this independence was unlikely to receive a positive response.
Resistance: 1.0935 (the nearest level), 1.0963, 1.1000 (psychological level), 1.1025, 1.1058 (maximum of 14th October), 1.1100, 1.1122, 1.1141, 1.1171, 1.1190, 1.1204 (maximum of 7th of October).
Support: 1.0900, 1.0882, 1.0850 (low of October 25th), 1.0824, 1.0800.
The indicator "Bollinger Bands" on the daily chart is turning sideways. The price range is narrowed, reflecting the negative dynamics of trading in recent days. It is recommended to stick to channel trading strategy.
The MACD volumes are decreasing, maintaining a sell signal (the histogram is below the signal line). It is recommended to keep current short positions and to open new ones in the short and very short-term.
Oscillator "Stochastics" also retains the descending direction, but is located near the zero mark in the oversold zone, which is a sign of an upward correction. It is better to wait for clarification of the situation.