EUR/USD: Here Are the Key Levels to Watch Today – UOB
The EUR/USD price erased some of its yesterday’s gains as the market continued to focus on the United States. The pair is trading at 1.1845, which is substantially lower than yesterday’s high of 1.1882.
The EURUSD price is moving because of the latest news from the United States. According to the Wall Street Journal, analysts have resigned to the fact that the country will not have a stimulus deal before the election.
This presents risks to the United States, which is reporting an average of 50,000 Covid-19 cases every day. Also, recent economic numbers show that the economy is slowing at a time when the Chinese economy is firing on all cylinders.
The pair is also reacting to news of election interference by state actors from countries like Iran and Russia. The main intelligence bureau said that Iran was involved in a coordinated attack as the government attempts to help Joe Biden win.
Most importantly, investors are paying attention to the ongoing development of a Covid-19 vaccine. Overnight, Brazil announced that it was suspending trials by AstraZeneca after a participant died. All these factors have pushed the EUR/USD lower as the dollar index rises.
EUR/USD technical outlook
The four-hour chart below shows that the EUR/USD pair has turned around after hitting the important level of 1.1882. That price is along the first resistance of the Andrews pitchfork tool and slightly above the 61.8% Fibonacci retracement level. At the current price, it is along the median line of the pitchfork. It is also above the 15-day and 25-day simple moving average.
Therefore, even with the current decline, the pair will remain in a bullish trend today so long as it is above the median line of the pitchfork. A move below this line will see bears target the next support at 1.1820.