EUR/USD challenges highs near 1.1130

The now softer tone around the greenback is allowing EUR/USD to attempt another visit of the key resistance area in the 1.1120/30 band.

EUR/USD now looks to US elections

The pair is closing its second consecutive week with gains, almost fully reverting October’s 4-cents drop to the mid-1.0800s and always backed by a strong resurgence of the selling pressure around the greenback.

The recent effervescence in the US political scenario has taken a toll on the buck during the past couple of weeks, prompting the US Dollar Index to extended its decline to the current 97.00 neighbourhood, or 3-week lows.

Looking ahead, it will be all about the US presidential elections on Tuesday. Market consensus is broadly signalling a Clinton win as clearly favourable for USD, with analysts even adventuring spot to slip back to the 1.08/1.07 range. Of course, totally the opposite is expected in case D.Trump is elected President. On this latter scenario, market participants are seeing the pair climbing to the 1.13/1.14 band.

EUR/USD levels to watch

The pair is now advancing 0.13% at 1.1119 facing the next hurdle at 1.1128 (high Nov.3) ahead of 1.1187 (200-day sma) and then 1.1195 (6-month resistance line). On the other hand, a breakdown of 1.0850 (low Oct.25) would open the door to 1.0820 (low Mar.10) and finally 1.0709 (2016 low Jan.5).

To learn more about this topic, check our video analysis.