EUR/USD is bullish ahead of the US presidential election result

EUR/USD is bullish and at fresh weekly highs as speculative interest keeps selling the greenback and buying equities ahead of the final result of the US presidential election, FXStreet’s Chief Analyst Valeria Bednarik briefs. The pair trades well above the 1.1800 level after flirting with the 1.1600 level on Wednesday.

Key quotes

“The focus remains on the US presidential election, as a winner has not been announced. A few states are still counting votes, and a definition may come after Wall Street’s opening. However, US President Trump is already disputing some results in court.”

“The US has published employment-related data, with Initial Jobless Claims for the week ended October 30 printing at 751K, worse than the 732K expected. Challenger Job Cuts in October decreased to 80.666K. Nonfarm Productivity advanced 4.9% in Q3, slightly worse than anticipated. Later today, the US Federal Reserve is having a monetary policy meeting. The central bank is expected to maintain the status quo and be a non-event.”

“The short-term picture is bullish, as, in the 4-hour chart, the pair has firmly advanced above all of its moving averages. The 20 SMA, however, remains below the larger ones, although it keeps advancing. Technical indicators, in the meantime, maintain their bullish slopes within overbought readings. The risk is skewed to the upside, although the election’s noise may well trigger a U-turn in the current risk-on stance.”