The Euro remains to trade within the 1.1332 – 1.1456 ranges as investors await the result of today’s US midterm elections. Traders need to expect a stronger greenback and a lower Euro if the Republicans succeeded in preserving their control of the House and the Senate. On the other hand, the greenback will be expected to fall and the Euro to rise if the Republicans lose control of either the House or the Senate. A loss of control by the Republicans will mean that Trump’s fiscal agendas and other alteration plans will be in jeopardy. Alongside the key US midterm elections, traders need to also keep an eye on any major political developments related to Italy’s budget plan and Brexit.
The pair is expected to continue ranging within the 1.1332 –1.1456 range until the results of the US midterm elections. Similar to what was mentioned above, if the Republicans succeed in preserving control of the House and the Senate then the pair will push lower breaking the 1.1322 support level and exposing the 1.1285 level. If Republicans fail in preserving the control of either the House or the Senate then the pair will push higher breaking the 1.1456 resistance level and exposing the 1.1515 level.
Support: 1.1322 / 1.1285
Resistance: 1.1456 / 1.1513