During the last few weeks The EUR/USD pair has attempted to overcome the 1.3006 fractal, but it was not successfully. There was an uptrend line since early September; it was broken on Friday. As you can see on the chart, now it is trading below the 200 day moving average periods. It indicates that something is not well in the Eurozone. Now the first weekly support 1.2765 and 1.2763 daily fractal are the last pair’s support. If the price of the euro closes below this level, we abandon our bullish outlook, as we placed above 1.2750; we mentioned about it several weeks ago.

Today is a key day as the U.S. presidential election takes place today. Through our fundamental analysis: if governor Romney ends up winning the election, this should be positive for the U.S. dollar as it has shown an inclination to a strong dollar policy. He has already said he would not bring back Bernanke and this, of course, could lead to a tightening of monetary policy by the Federal Reserve.

Therefore, we recommend caution because tomorrow will be very volatile. Do not risk your capital, the market always gives opportunities.

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