EURUSD is testing resistance ahead of Tuesday’s U.S. presidential election. But with intense volatility on the horizon, what can we expect?
Watch today’s video for the latest analysis, including a DXY update.
The EURUSD is once again testing 1.0900 resistance after opening the week with a 50-pip gap.
Last week, I pointed out the risk of trading directly ahead of this week’s US presidential election.
With all the movement we saw in October, especially with pairs like EURUSD, now isn’t the time to give back those gains due to increased volatility.
For now, 1.0900 remains the level to watch as resistance, and we also have a weekend gap around 1.0840.
Gaps like this are often filled within the first couple of days, so let’s see if this week follows that pattern.
At the moment, EURUSD is trading within the 1.0840 to 1.0900 range.
For the DXY, there’s a chance the dollar might revisit recent lows around 103.40, with a full retest of 103.20 support in play.
Given this week’s election, I’m staying on the sidelines until volatility settles.
Events like these tend to bring both sides of the market into play, so it’s worth waiting for things to calm down.
