## EUR/USD Poised for Volatility as US Election Looms
The global markets are on edge as the highly anticipated US presidential election approaches, and the EUR/USD currency pair is expected to experience significant volatility in the coming days. The outcome of the election will likely have a profound impact on the direction of the major currency pair, with a victory for Donald Trump potentially bolstering the USD and leading to a notable increase in the EUR/USD exchange rate. Conversely, a win for Kamala Harris could see the USD decline by an average of 1-2%, putting downward pressure on the EUR/USD.
However, the impending volatility is not solely due to the election. The upcoming Federal Reserve meeting scheduled for Wednesday adds another layer of uncertainty. The Fed is anticipated to cut interest rates slightly by 25 basis points, a move that could further influence the EUR/USD. Market participants are eagerly awaiting any forward guidance from the Fed, particularly with expectations leaning towards another rate reduction in December.
While significant economic data releases are also expected, these pivotal events may overshadow their impact. The market’s focus is likely to remain firmly on the election and the Fed’s monetary policy decisions.
## Technical Analysis of EUR/USD
The EUR/USD market has recently completed a growth structure, reaching 1.0913. This movement is considered part of a third growth wave, which is anticipated to target 1.0950. Once this target is achieved, a retraction to 1.0860 is expected, potentially forming a broad consolidation range around this level.
Technical indicators, such as the MACD, suggest an upward trajectory, reinforcing the possibility of reaching 1.0960 before a corrective pullback to 1.0860. Support at 1.0872 has spurred the development of a growth impulse towards 1.0900, which is expected to be tested soon. If this level is breached, it could extend the growth wave towards 1.0950.
The Stochastic oscillator supports this short-term forecast, indicating upward momentum with its signal line targeting the upper echelons around 80.
The coming days will be pivotal for the EUR/USD, with the US presidential election and the Federal Reserve meeting poised to drive significant volatility. Traders and investors should closely monitor these events and adjust their strategies accordingly.
