- EUR / USD leaves the recent pessimism behind and rises back to the 1.1680 region.
- European stock markets start Tuesday with decent gains.
- The US presidential election will be the highlight event on Tuesday and Wednesday.
After bottoming out near the 1.1600 region, the pair EUR/USD seems to have found some buying interest and advances above the 1.1680 zone, to new 2-day highs.
EUR / USD focuses attention on US elections
EUR / USD gains at the start of the European session on Tuesday and stops five consecutive daily falls at the same time.
The pair appears to be strengthening during the European session due to a renewed selling pressure around the US dollar and amid growing wariness ahead of the US presidential election.
It is worth noting that a Democratic victory is perceived as a negative event for the dollarAs new fiscal stimulus as well as a different approach to the current US-China trade conflict appears more likely, all of which translates into a better appetite for risk from investors weighing on the safe-haven USD.
As for the macroeconomic data in the Old Continent, the Eurogroup meeting (virtual) will be the center of attention in the middle of an empty economic calendar. On the other side of the Atlantic and apart from the elections, the factory orders, the IBD / TIPP index and the weekly API report will be published today.
What can we expect around the EUR?
The EUR / USD pair manages to accelerate the pace to the upside after falling near the 1.16 region in recent hours. Despite the downward movement, the outlook for the EUR / USD remains positive and is supported so far by favorable results from national fundamentals (despite momentum appearing somewhat mitigated in several regions), although stance now more pessimistic from the ECB somewhat limits a serious rally in the pair. As usual, the euro still appears underpinned by the strong current account position of the eurozone.
EUR / USD levels
At the time of writing, the EUR / USD pair is gaining 0.38% on the day, trading at 1.1685. A breakout of 1.1782 (55-day SMA), would target 1.1880 (October 21 high) on the way to 1.1917 (September 10 high). On the other hand, the next support is at 1.1622 (November 2 low), followed by 1.1612 (September 25 low) and 1.1495 (March 9 high).
.
Credits: Forex Street
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
