Get 40% Off
🚀 Our AI Picked 6 Stocks that Jumped +25% in Q1. Which Picks Will Soar in Q2?Unlock full list

EUR/USD Hits Two-Week Highs on U.S. Election Day

Published 11/08/2022, 10:26 AM
Updated 07/09/2023, 06:32 AM

The U.S. remains on the defensive on Tuesday, with the EUR/USD advancing to fresh to a two-week high while investors remain cautious on the U.S. midterm election day.

At the time of writing, the EUR/USD is trading at the 1.0065 zone, 0.45% above its opening price. The dollar saw a short-lived bounce earlier on the day but then turned lower alongside Treasury yields.

The midterm election outcome might impact fiscal policy as Republicans are ahead in the polls. Americans are voting to elect one-third of the Senate, all seats of the House of Representatives, and more than 30 governors.

Meanwhile, the euro got some support from the European Central Bank Luis de Guindos' comments and better-than-expected data. The ECB Vice-President stated the Governing Council would continue to raise the rates to ensure that inflation,

"Will come back into line with the ECB's definition of price stability."

Eurozone Retail Sales advanced 0.4% in September, just as expected, and recorded a 0.6% yearly decrease, much better than expectations of a 1.3% decline.


EUR/USD daily chart.

From a technical standpoint, the EUR/USD short-term perspective remains tilted to the upside according to indicators on the daily chart as the price struggles to establish itself above the 100-day SMA.

A decisive break above the 100-day SMA could pave the way to the 1.0100 area, ahead of September's highs at 1.0197. On the other hand, the following support levels could be faced at parity and then at the 20-day SMA standing around 0.9875.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.