The euro rose sharply in the Asian market at the start of the week, climbing from last week’s close of 1.0830 to around 1.0880. This increase is likely due to adjustments ahead of the U.S. presidential election, after U.S. long-term interest rates had previously risen during the ‘Trump Rally.’ As dollar selling continued, the euro went up to 1.0914. However, when the New York market opened, U.S. long-term interest rates rose again, strengthening dollar buying and pushing the euro back down to close around 1.0880.
With the U.S. election outcome uncertain, the euro is likely to see unstable movement for a while. However, as the 21-day moving average (BB baseline) is crossing below the 200-day moving average, a sign of possible decline is beginning to appear if traditional patterns hold.
Expected EUR/USD Range: 1.0900 – 1.0840
Note: This forecast does not guarantee profits. Please make your own decisions before trading.