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EUR/USD: US Election Results/Outcome Betting in the Driving Seat.

FOREX
MNI (London)
  • Volatile swings in Asia as market took its lead from US election betting forecasts.
  • Early outlook favoured Biden and prompted pressure on the USD, EUR/USD pushed up to $1.1770.
  • As results began to come through it suggested election was a closer call and betting switched to favouring Trump.
  • USD pared early losses, EUR/USD dropped to $1.1603.
  • Biden still seen able to claim victory saw rate recover to $1.1682 then settled into Europe around $1.1650.
  • Expect further volatility as race comes down to the wire. Biden remains favoured but the Senate looks to remain Republican. The House remains Democrat.
  • Support remains into $1.1600, Asian traders suggest a break of $1.1590 could prompt a decent squeeze. Resistance $1.1680/1.1700, $1.1740, $1.1770.
  • MNI Techs: Technical signals continue to highlight a bearish backdrop and today's low print of 1.1603 highlights an extension of the recent down leg, clear break of 1.1612 to signal potential for weakness towards 1.1576 next, a Fibonacci projection. On the upside, today's initial resistance is at the overnight high of 1.1770.
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

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