EUR/USD Price Analysis: Drops below 1.16 after rejection at former support-turned-hurdle

EUR/USD is trading near 1.1685 at press time, representing a 0.23% decline on the day. 

Early Wednesday, the pair turned lower from 1.1771, which is the resistance of the trendline rising from Sept. 28 and Oct. 16 lows, after media outlets projected Trump victory in the key state of Florida and North Carolina, dashing hopes of a Democratic sweep in the US presidential elections and forcing risk assets to price out the prospects of a bigger fiscal stimulus. 

The rejection at the trendline and the subsequent drop to 1.1685 has reinforced the downside break of the trendline confirmed on Oct. 29 and shifted risk in favor of a re-test of the Nov. 2 low of 1.1622. 

That said, the risk sentiment would improve if Democratic candidate Biden emerges as a clear winner. In that case, the EUR/USD pair could turn higher and revisit 1.1771. 

Daily chart

Trend: Bearish

Technical levels