EUR/USD clinches highs above 1.1060

The now softer tone around the greenback is allowing EUR/USD to recover some ground lost at the beginning of the week, testing daily highs in the 1.1060/65 band.

EUR/USD looks to US elections

The pair is posting moderate gains on Tuesday against the backdrop of some profit taking surrounding the buck in light of yesterday’s strong rebound and ahead of today’s results from the US elections.

The offered bias in USD comes despite Democratic candidate H.Clinton remains in the lead by 2-4 pts, according to recent polls, although the cautious mood is expected to grow bigger as the final outcome appears everything but clear for the time being.

Nothing worth mentioning data wise in the Old Continent today, whereas JOLTs Jobs Openings during September are due later in the NA session followed by the speech by Chicago Fed C.Evans (2017 voter, dovish) and the API’s weekly report on crude supplies.

It is worth mentioning that EUR remains under extra pressure on the positioning front, as speculative net shorts have increased to the highest level since mid-January at over 137K contracts during the week ended on November 1, according to the latest CFTC report.

EUR/USD levels to watch

The pair is now advancing 0.19% at 1.1061 and a breakout of 1.1123 (55-day sma) would target 1.1146 (high Nov.4) en route to 1.1185 (200-day sma). On the downside, the immediate support aligns at 1.0850 (low Oct.25) followed by 1.0820 (low Mar.10) and finally 1.0709 (2016 low Jan.5).

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