EUR/USD initially spiked during the session on Wednesday with the Obama reelection, as it was thought that the US dollar would be devalued through more quantitative easing and extreme spending. Although this is probably still the case, it was suggested by the ECB Chairman that Germany has started a slowdown, and this is the last vestiges of strength leaving the European Union. Because of this, we could see this pair fall, but the reality is that the United States may be the Euro’s best friend as they are not exactly strong either. Nonetheless, we think a break of the lows from Wednesday since this pair looking for the 1.26 level in the short-term. As far as buying is concerned, a break above the highs from Wednesday would be extremely bullish sign.
Written by FX Empire