The EUR/USD currency pair is trading positively at approximately 1.0880 during the early hours of the European session on Tuesday. Despite this relatively stable position, a bearish sentiment continues to dominate as the pair remains below the significant 100-day Exponential Moving Average (EMA). The Relative Strength Index (RSI) further indicates downward momentum, lingering beneath the neutral midpoint around 47.25, suggesting that the most likely trajectory could be a downward adjustment.
Market dynamics are influenced by the prevailing uncertainty surrounding the U.S. presidential election, which appears to be weighing on the U.S. dollar. The potential for a Republican clean sweep could bolster the dollar; however, a win for the Democrats, particularly Vice President Harris, may have a more pronounced negative impact on the currency. Analysts note that the dollar’s performance could also be muted if Trump prevails while the Democrats maintain control of the House of Representatives.
In terms of technical levels, the immediate support for the EUR/USD pair is identified at 1.0800, a notable psychological level. Should the pair breach this support, further downside could lead to the 1.0770 – 1.0760 range, which includes the lows witnessed on October 24, along with the lower boundary of the Bollinger Band. A fall through this level may expose a more significant target at 1.0666, recorded on June 26.
Conversely, if the market moves upwards, the first resistance level to watch is positioned at 1.0931, coinciding with the 100-day EMA. Additional resistance is set at 1.0951, marking the upper limit of the Bollinger Band, while the crucial psychological level of 1.1000 stands out as a significant barrier against further upward movement in the pair.
