The euro currency is trading sharply higher against the US dollar in early Wednesday trade, following the results of the US mid-term elections. Will the upward movement last? EURUSD technical analysis reveals.
November 7, OctaFX – The EURUSD pair is strongly bullish while trading above the 1.1431 level, with traders now watching the inverted head and shoulders pattern across the four-hour time frame.
Despite the bullish break higher, the EURUSD pair still faces key risk-events from EU Retail Sales and the FOMC policy meeting later this week.
EURUSD Technical Analysis
The EURUSD had a volatile Asian session with the pair fluctuating between the 1.1472 and 1.1395 level. This is as the results from the US elections started to stream in.
With no major economic data expected today from Europe and the US, the pair’s movements will be dictated by reactions to the Midterms. The pair is now trading at 1.1445, which is slightly higher than today’s low.
The ADX indicator is currently at 26, an indicator that the current upward movement will not last.
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