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EUR/USD tests key near-term level as the dollar slips

EUR/USD runs into a test of its 100-hour moving average

The downside move in the pair yesterday tested the support region around 1.1612-27 from the late September lows before consolidating closer to 1.1640-50.
But as we get into election day, the dollar is weakening as we see EUR/USD climb to a session high of 1.1685 and now testing its 100-hour MA (red line) @ 1.1681.
For sellers, keeping below that will retain the near-term bearish bias but if buyers hold a break above that level, then the bias turns more neutral instead.
Further resistance is then see from the Friday highs around 1.1700-04.
Beyond that, there is room to roam for buyers until we get towards the 200-hour MA (blue line) closer to 1.1751 currently.
Equities are trading firmer to start the session, while Treasury yields are sitting higher as well. It is shaping up to be something that resembles a “risk-on” play, or it could very well be the market starting to posture for a more straightforward election result.
In view of the latter, the final polls yesterday still suggest that Biden holds a lead in the six key swing states and if a ‘blue wave’ pans out, it should bode well for the stimulus outlook – which is arguably the key near-term focus of the election this year.

Source: Technical analysis

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