The first results of the US elections saw EURUSD push from 1.17 to 1.16 and now back up again to 1.17. We mentioned in our last analysis that we expect a rise in volatility and traders should be very cautious.
Green rectangle - support
EURUSD is near today's highs and near yesterday's close. Volatility rose today and price tested the key support area of 1.16 once again. Price respected support and this confirms this support level. This means that if price breaks below it sometime in the near future, we should expect more selling. Until then we remain neutral as price remains also below key resistance trend line at 1.1845. Volatility is expected to remain high as results from US elections continue to shape the political map. Increased uncertainty about the results helps volatility stay high and that is why as we said yesterday we focus on the weekly price action and try to avoid short-term noise.
