The Euro is trapped within the 1.1332-1.1456 range as investors await tomorrow’s US midterm elections. Friday’s NFP report failed to determine a clear direction for the currency as nothing surprising came out of the better than expected report. It is true that the Non-farm Payroll number printed better than expected but this fact did not provide anything new to the market, in a sense, investors remain confident that the Federal Reserve will hike rates in December. For now, Single currency traders need to monitor news announcements related to four main drivers for the pair: tomorrow’s US midterm elections, Thursday’s FOMC statement, Italy’s budget plan, and Brexit.
The Euro is expected to continue to range until prices break one of the two sides of the range. Uncertainty regarding the future direction of prices is also causing the pair to trade around the 13 and 50-period moving averages. Any of the above mentioned drivers may lead to a break outside of the range. Traders need to note that a break above the 1.1456 point will expose the 1.1513 level, while a break below the 1.1332 point will expose the 1.1285 level.
Support: 1.1322 / 1.1285
Resistance: 1.1456 / 1.1513