The EUR/USD pair fell below the 1.28 level for the second day in a row on Tuesday, only to pop back up and form a hammer yet again. The Euro is showing a significant amount of resilience of this area, and as such it’s hard to think that we will fall precipitously in the near-term. However, with the US Presidential election happening during the session, the election results will certainly have a major affect on this pair.
The traders essentially a binary one, but should not be taken until the election results become either known, or at least clear and where they are going. A break of the highs from the Monday session would have us buying the Euro as it should return to the 1.30 level. A break of the lows from the Tuesday session would have us selling the Euro hand over fist as it would show a falling down to the 1.26 level is very likely.
Written by FX Empire