EUR/USD: Rejected above key hurdle on US election uncertainty

EUR/USD looks south as Russia and Iran meddle in US elections.
Prospects of pre-election fiscal stimulus deal fade, boosting demand for the dollar.
Euro fails to keep gains above the 61.8% Fibonacci retracement hurdle.

Omkar Godbole FXStreet Contributor

EUR/USD is flashing red on Thursday as the anti-risk dollar is drawing haven bids on reports of meddling in US elections and fading prospects of a US fiscal stimulus deal.

The pair is currently trading at 1.1842, representing a 0.13% drop on the day. The pair faced rejection above 1.1859 during the Asian trading hours. That level is the 61.8% Fibonacci retracement of the sell-off from the Sept. 1 high of 1.2011 to Sept. 25 low of 1.1612.

Russia, Iran interfere in US elections

In an impromptu news conference Wednesday night, the US intelligence director John Ratcliffe and FBI Director Chris Wray said Iran and Russia have obtained voter registration information.

The officials warned that the US would impose costs on nations trying to meddle in Presidential elections due on Nov. 3.

Further, negotiations on a new coronavirus aid bill faced a setback after President Donald Trump blasted Democrats for being unwilling to craft an acceptable compromise, weakening odds of a pre-election fiscal stimulus deal.

As such, risk sentiment has soured, and the dollar is gaining ground against the EUR and other major currencies. The pair could suffer deeper losses if the risk aversion worsens during the European trading hours.

The Eurozone economic calendar is light with just German Gfk Consumer Confidence (nov) scheduled for release at 06:00 GMT. A big miss on expectations would renew growth concerns and add to bearish pressures around the pair. Later in the day, the focus would shift the US weekly jobless claims.

Technical levels

EUR/USD

Overview
Today last price	1.1842
Today Daily Change	-0.0019
Today Daily Change %	-0.16
Today daily open	1.1861

Trends
Daily SMA20	1.1747
Daily SMA50	1.1798
Daily SMA100	1.1623
Daily SMA200	1.1292

Levels
Previous Daily High	1.1881
Previous Daily Low	1.1822
Previous Weekly High	1.1827
Previous Weekly Low	1.1688
Previous Monthly High	1.2011
Previous Monthly Low	1.1612
Daily Fibonacci 38.2%	1.1858
Daily Fibonacci 61.8%	1.1844
Daily Pivot Point S1	1.1828
Daily Pivot Point S2	1.1796
Daily Pivot Point S3	1.1769
Daily Pivot Point R1	1.1887
Daily Pivot Point R2	1.1913
Daily Pivot Point R3	1.1946

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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