EUR/USD went higher but struggled to hold onto the gains as the dust settled from the US mid-term elections. What’s next? GDP numbers and other figures stand out. Here is an outlook for the highlights of this week and an updated technical analysis for EUR/USD.
The US mid-term elections resulted in a split Congress, as expected. The US Dollar lost a bit of ground on the Democrats’ win of the House but recovered quite quickly. The Fed left rates unchanged and left the door wide open to a rate hike in December. The Eurogroup meetings yielded a bit of optimism regarding the clash between Italy and the European Commission regarding the Italian budget. However, the issue is far from being resolved. A Brexit deal seems close and this provided a bit of support to the common currency.
Updates:
EUR/USD daily chart with support and resistance lines on it. Click to enlarge:
