Preliminary U.S. presidential election results suggest a lead for the Republican candidate.
A Trump victory is widely seen as positive for the U.S. dollar due to his proposed policies, which include:
- raising tariffs on major U.S. trade partners;
- encouraging domestic enterprises and small-cap companies.
Additionally, the Trump administration may influence the Federal Reserve toward potential rate cuts, aligning with prior market expectations.
This news has strengthened the dollar, especially against the euro.
On October 21, analysis of the EUR/USD chart identified support levels at:
- a key trendline (displayed in blue);
- the psychological benchmark of 1.0800.
The pair did rebound upward from this area (marked with an arrow), but recent developments have triggered a bearish move, pulling EUR/USD below this critical trendline.
This downward momentum may persist, potentially keeping EUR/USD beneath the 1.0800 level.
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