Technical Analysis

EUR/USD keeps at the highs near 1.1850 at the moment

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The dollar is trading rather mixed in the European morning, keeping a slight advance against the pound, aussie and loonie but trading lower against the euro, franc and kiwi.

EUR/USD is keeping near session highs at 1.1850 currently as buyers are trying to keep a push above the trendline resistance seen @ 1.1838.

But the 21 October high @ 1.1881 offers some added resistance on the way up and those will be the two key levels to watch ahead of the close later today.

The US election is starting to yield a clearer result with Biden now taking the lead in Georgia, but there’s still an off chance that Trump could pull it all back; although that is now viewed as an unlikely scenario.

As for the dollar, the flows today could possibly tie back to how risk assets perform later in view of the election result ahead of the weekend.

The market is getting a first dose of that with S&P 500 futures falling to a session low, down by 1% after the news on Biden taking the lead in Georgia.

The pullback could still be viewed as a retracement to the week’s gains but as the relief in the past few days fade, could we be staring down a possibility where the market primes itself for buying the rumour and then selling the fact?

If so, the hurt in stocks/risk could keep the dollar somewhat supported and EUR/USD sellers could lean on the key resistance levels above to drive some momentum lower.

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