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EUR/USD: frozen ahead of the US midterm elections, falling wedge sighted on the daily

  • The EUR/USD is comatose around 1.14 ahead of the US midterm elections.
  • Markets are pricing a split congress.
  • A Republican majority in both houses could bode well for the USD.

The EUR/USD is flatlined around 1.14 and may revisit the recent low of 1.13 if the Republicans secure a majority in both chambers.  

To start with, the markets are pricing a split Congress - Democrats to take House and Republicans to retain the Senate.

As a result, a Republican majority in both houses may embolden Trump to pursue more aggressive nationalist and isolationist policies. Hence, the USD could pick up a bid, although the EUR/USD may defend the key support of 1.13 as Trump has little room for a further fiscal splurge.

On the other hand, a Democrat majority in both chambers would also be a surprise and could trigger a political turmoil in Washington, leading to risk aversion and losses in the USD. As a result, the EUR/USD could beat the upper edge of the wedge, confirming a bearish-to-bullish trend change.

EUR/USD Technical Levels

EUR/USD

Overview:
    Last Price: 1.1403
    Daily change: -5.0 pips
    Daily change: -0.0438%
    Daily Open: 1.1408
Trends:
    Daily SMA20: 1.1456
    Daily SMA50: 1.1563
    Daily SMA100: 1.1587
    Daily SMA200: 1.1862
Levels:
    Daily High: 1.1424
    Daily Low: 1.1353
    Weekly High: 1.1456
    Weekly Low: 1.1302
    Monthly High: 1.1625
    Monthly Low: 1.1302
    Daily Fibonacci 38.2%: 1.1397
    Daily Fibonacci 61.8%: 1.138
    Daily Pivot Point S1: 1.1366
    Daily Pivot Point S2: 1.1324
    Daily Pivot Point S3: 1.1296
    Daily Pivot Point R1: 1.1437
    Daily Pivot Point R2: 1.1466
    Daily Pivot Point R3: 1.1507

 

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