In a nail-biting fight to the 2020 US Presidential race, EUR/USD is struggling to extend the rebound from four-month lows of 1.1605. The US dollar is off the multi-week highs but remains strongly bid, as the election race tightens. The S&P 500 futures, however, rise 1%.

The likely delay in results from Michigan, Wisconsin, and Pennsylvania due to slow counting is somewhat weighing in on the market mood. Meanwhile, President Trump bags Florida while Arizona is called for Joe Biden. There is an increased odds of an electoral college tie.

With the Trump administration finally gaining hopes of re-election, considering the latest lead in Florida, global risks shed the early-Asian optimism. This joins the House leader Mitch McConnell’s re-election in Kentucky to weigh on trading sentiment. Markets remain in limbo and await the outcome of the presidential election, benefiting the safe-haven US dollar.

Trump said that “We were going to win this election. Frankly, we did win… Our goal is to ensure the integrity for the good of the country. We want the law to be used in a proper manner. So, we will be going to US Supreme Court,” Trump said, adding that the Biden campaign had committed “a fraud on the American public”.

Whereas Biden had said he was optimistic of a win in the US presidential elections and thanked his supporters for their patience. “Your patience is commendable. We knew this would go long, but who knew it would go till tomorrow morning, or even longer. We feel good about where we are, we really do… We are on track to win this election,” Biden said, speaking in Delaware.

EUR/USD 4 Hour Chart:

Support: 1.1643 (S1), 1.1584 (S2), 1.1536 (S3).

Resistance: 1.1750 (R1), 1.1798 (R2), 1.1857 (R3).

Amidst all the catalysts we expect a bearish trend for EUR/USD, whether ADP jobs data and ISM Services PMI report create fresh incentive is yet to be seen.