EURUSD Loses More Support and Tests the 1.1625/20 Region As Attention Stays on Tuesday’s US Elections

EURUSD Price Analysis – November 2

The selling bias around the EURUSD increased for another session on Monday and drags the pair to fresh 2-month lows in the 1.1625/20 region. Increasing cautiousness ahead of the US presidential elections due on Tuesday gives extra attention to the pair. The decline is driven by strong risk aversion as traders continue to flee into safety on growing fears over fresh lockdown measures across Europe.

Key Levels
Resistance Levels: 1.2011, 1.1917, 1.1808
Support Levels: 1.1612, 1.1495, 1.1350
EURUSD Long-term Trend: Ranging
At the moment, the pair is up 0.05% to 1.1648 and will face the next support at 1.1622, followed by the 1.1612 low and finally the 1.1495 (high). On the other hand, a break of 1.1880 would target 1.1917 (high) en route to 1.1965 (monthly high). A bearish RSI, combined with bearish 5 and 13 moving averages, indicates a strengthening bearish bias.

In a broader context, the rise from 1.0635 is seen as the third phase of the trend from 1.0339 (low). At the next level at 1.2011, a further rally towards cluster resistance can be seen. This will remain a preferable case as long as the 1.1422 resistance turned into support is held.
EURUSD Short term Trend: Bearish
The fall in EURUSD continues today and the intraday bias remains lower towards the 1.1612 support level. A breakthrough will confirm the resumption of the correctional decline from the level of 1.2011. Further decline is expected to 38.2% retracement from 1.0635 to 1.2011 at 1.1485.

On the other hand, a break above the minor resistance level of 1.1725 will primarily change intraday sentiment. But the risk may stay downtrend as long as the 1.1880 resistance level is held in case of a recovery. In the short term, EURUSD is trading lower, with 1.1612 anticipated to offer immediate support for additional losses.

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