EUR/USD reverses from one-week high as Trump’s camp turns hopeful

• EUR/USD drops over 70 pips to revisit the sub-1.1700 amid fresh challenges to the markets.
• President Trump leads in Florida, McConnell wins in Kentucky.

EUR/USD slumps from the highest since October 28, currently around 1.1695, during Wednesday’s Asian session. The pair recently reacted to US President Donald Trump’s lead in Florida’s voting count.

With the Trump administration finally gaining hopes of re-election, considering the latest lead in Florida, global risks shed the early-Asian optimism. This joins the House leader Mitch McConnell’s re-election in Kentucky to weigh on trading sentiment.

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Markets initially cheered hopes of the Democratic Party’s victory in both the American houses, mostly known as a blue wave. The Democrats have portrayed the image of a stimulus-friendly party off-late.

Earlier increasing odds of the blue wave underpinned US stock futures and Asia-Pacific shares, not to forget the US treasury yields.

Looking forward, traders will search for clues to strengthen hopes of a major Democratic victory in the US 2020 elections while looking at the stimulus.

Technical analysis

A descending trend line from September 01, currently around 1.1845, becomes the key upside barrier for the EUR/USD bulls to watch.