EUR/USD Daily Outlook Update EUR/USD remains steady on Tuesday amid risk-averse sentiment following the US midterm election results. Tensions between the US and Iran also remain on the table. At the time of writing, EUR/USD is trading at 1.1187, down 0.10%, after briefly moving above 1.1200 on Monday. Oil prices are fluctuating amid changes in the news flow. Oil was under pressure amid rumors of a potential agreement between Washington and Tehran on concessions over Iran's nuclear program and frozen funds. Still, the pair later moved in the opposite direction. Earlier, oil prices were higher amid the WSJ report on US air strikes on Iran's Qeshm Island. The uncertainty in the talks adds a geopolitical risk premium to oil prices amid hopes of a diplomatic breakthrough and the threat of escalating military action. High energy costs are likely to prolong inflation and reinforce expectations that central banks will keep monetary policy tight for longer. The Fed hiked interest rates by 25 basis points (bps) in September and paused in October, reiterating its dedication to achieving price stability. The CME FedWatch Tool shows a 75% probability of another hike in December. The hawkish stance supports the US Dollar, with solid labor numbers adding to positive sentiment. US JOLTS Job Openings rose to 7.523 million in September from 7.19 million, beating expectations of 7.13 million. The US Dollar Index (DXY), measuring the performance of the Greenback against six other major currencies, trades at 101.93. For an energy-dependent Eurozone, high energy costs not only affect the region's growth but also increase the import bill and pose an upside risk to inflation. The French fiscal problems are another concern for the Euro (EUR). The European Central Bank (ECB) also maintained its rate at the same level in October after hiking rates by 50 bps during the year. For an energy-dependent Eurozone, high energy costs not only affect regional growth but also increase the import bill and pose an upside risk to inflation. The French fiscal problems are another concern for the Euro (EUR). On the daily chart, EUR/USD quotes 1.1199 and retains a short-term bearish bias, with spot trading below the 20-day exponential moving average (EMA) at 1.1214. The currency pair remains below this technical indicator, showing limited upside, while the Relative Strength Indicator (14) at 42 signals declining downside but not oversold conditions. Regarding topside resistance, it sits at the 20-day EMA of 1.1214, which price must breach to relieve the short-term bearish trend and enable a constructive period to begin. In the absence of support levels in the recent dataset, traders can refer to the pair's behavior around recent lows for signs of new selling strength or consolidation.
