EUR/USD analysis: dollar maintains the bullish pace, but election has the last saying

Valeria Bednarik FXStreet

EUR/USD Current price: 1.1037

The dollar opened the week gapping higher against the JPY and its European rivals, amid an announcement made by the FBI late Sunday, stating that the bureau has decided to take no action against Hillary Clinton over new emails related to her private server. In a letter to Congress, the director of the Federal Bureau of Investigation James Comey stated that “based on our review, we have not changed our conclusions that we expressed in July.“ that there were no grounds to recommend prosecution. The greenback maintained its momentum all through the day, although gains moderated as the day went by, as the US Presidential election looms.

In Germany, new factory orders dropped by 0.6% in September when compared to the previous month 0.9%, on the back of weaker domestic and foreign demand. Retail Sales in the EU fell by 0.2% in the same month, slightly better-than-expected, but the year-on-year reading came in at 1.1%, below a previously revised 1.2%. In the US, the FED's Labor market conditions index for October surged to 0.7, indicating continued growth in the employment sector. Anyway, is all about the election this Tuesday, and choppy trading is expected ahead of the results.

Technically, the EUR/USD pair has turned short term bearish, given that in the 4 hours chart, the price has broken below these last few days' support at 1.1060, also the 50% retracement of the 1.1278/1.0850 decline, while technical indicators maintain strong bearish slopes well below their mid-lines. Furthermore, the pair is trading back below the 200 SMA, while the 20 SMA is gaining downward strength in the 1.1090 region. The immediate support is 1.1010, the 38.2% retracement of the mentioned slide, with a break below it exposing 1.0950 for this Tuesday.

Support levels: 1.1010 1.0950 1.0910

Resistance levels: 1.1060 1.1090 1.1120

View Live Chart for the EUR/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD meets initial support around 1.1800

EUR/USD remains on the back foot, although it has managed to reverse the initial strong pullback toward the 1.1800 region and regain some balance, hovering around the 1.1850 zone as the NA session draws to a close on Tuesday. Moving forward, market participants will now shift their attention to the release of the FOMC Minutes and US hard data on Wednesday.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold remains offered below $5,000

Gold stays on the defensive on Tuesday, receding to the sub-$5,000 region per troy ounce on the back of the persistent move higher in the Greenback. The precious metal’s decline is also underpinned by the modest uptick in US Treasury yields across the spectrum.

Ethereum Price Forecast: BitMine extends ETH buying streak, says long-term outlook remains positive

Ethereum (ETH) treasury firm BitMine Immersion continued its weekly purchase of the top altcoin last week after acquiring 45,759 ETH.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.