USD Struggles To Find Clear Direction After U.S. Senate Sweep

Democrats won two key Georgia runoffs and stocks advanced while the U.S. dollar was steady. The U.S. Senate sweep boosted speculation of more fiscal stimulus to revive growth and reigniting the reflation trade.

The dollar, however, struggled to find a clear direction and ended the day largely unchanged versus the euro and pound.


Are chances in favor of upcoming breakouts? Maybe, since prices narrowed formatting a symmetrical triangle which could predict price breakouts to either side. Watch out for a bearish break below 1.3570 on the downside or a bullish break above 1.3660 on the upside.

The technical picture in the EUR/USD has not substantially changed since our analysis from Monday and a run for 1.24 is still in the cards. For bearish momentum to accelerate we would now need to see a significant break below 1.23.

The DAX rose again towards the 14000-level and we now see a next higher target at 14040 whereas the support remains intact at around 13600.


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