EUR/USD has limited bullish potential while below 1.1770

The EUR/USD pair is at the upper half of its daily range, trading around 1.1710, as the US dollar has given up early gains since the presidential race shows tight results. Euro/dollar needs to overcome the daily high at 1.1770 to recover bullish potential, FXStreet’s Chief Analyst Valeria Bednarik briefs.

Key quotes

“The greenback is now under pressure and equities trimmed intraday losses as the presidential race tightens. Georgia, Michigan, Nevada, North Carolina, Pennsylvania and Wisconsin are yet to finalize counting ballots.”

“Markit published the final versions of October Services PMIs, which were upwardly revised in most of the EU. The German index printed at 49.5 from 47.3, while the Union index improved from 46.2 to 46.9. As for the US, the country just released the ADP survey, which showed a slower than expected pace of job creation in October. The private sector added 365K new positions, far below the 650K expected and the previous 753K.”

“The bullish potential for the pair would remain limited as long as it trades below 1.1770, the daily high. The 4-hour chart shows that the 100 and 200 SMA converge around the mentioned high, reinforcing the static resistance level. At the same time, it is trading above its 20 SMA, which retains a modest bullish slope. Technical indicators, in the mentioned time-frame, maintain their bullish slopes within positive levels.