The 200-day moving average sits at 1.4290 today and damned if EUR/USD doesn’t head into the home stretch sitting right on that level. Traders would prefer to see the price settle well above or below the average to try and divine some sort of signal from today’s rice action. A bounce well above 1.4290 would suggest a failed breakout to the downside while a close well below the average would tend to confirm an accelerating downtrend. A close on the average leaves many in wait-and-see mode.
EUR/USD found support between 1.4250 and 60 on several downside thrusts today. Central banks are presumed buyers though talk if official interest was more prevalent during London hours than New York, and mostly at higher levels.
At this point, it seems as though a Brown victory is fully prices into the market, so the surprise would be a Democratic victory. A sell-off in the dollar would likely unfold in that case.
