The aussie breaks higher to reach one-month highs above 0.6300. (Pivot Orderbook analysis)

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• The aussie breaks higher to reach one-month highs above 0.6300.
• The US dollar dives with all eyes on the mid-term elections.
• AUDUSD: A breach of 0.6550 might puss the pair to 0.6680/6750 – SocGen.

The pair currently trades last at 0.6541.

The previous day high was 0.6491 while the previous day low was 0.6406. The daily 38.2% Fib levels comes at 0.6458, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6439, expected to provide support.

The Australian dollar broke higher with the US dollar dropping across the board on Tuesday’s US session. The pair has broken past 0.6480 resistance area to reach levels past 0.6500 for the first time since early October.

A hitherto steady US dollar has lost momentum on the US morning trade, heading lower across the board with the market focusing on the US mid-term elections. Although the final results may still take days, the first polls are anticipating a Republican victory, that might bring the US congress to a gridlock.

That scenario would complicate Biden’s plan to pass the fiscal stimulus measures projected for the next year, which would provide further reasons for the Fed to ease its sharp monetary tightening cycle.

In a rather thin macroeconomic docket, Australian Business conditions deteriorated less than expected in October, although business confidence stalled, reaching its lowest level since January, according to data from the National Australian Bank.

In the US, the NFIB Business Optimism index retreated to 91.3 in October from 92.1 in the previous months. The highlights of the week in the US =calendar, however, will be October’s CPI data, which might offer further insight into December’s monetary policy decision.

From a technical perspective, FX analysts at Société Générale see the pair appreciating further if the 0.6550 resistance is broken: “The pair is evolving within an Inverted Head and Shoulders denoting potential rebound (…)Neckline at 0.6550 is the first layer of resistance. If this is overcome, a short-term up move could materialize towards the July low of 0.6680/0.6750.”

Technical Levels: Supports and Resistances

EURUSD currently trading at 0.6541 at the time of writing. Pair opened at 0.6479 and is trading with a change of 0.96 % .

The pair is trading above its 20 Daily moving average @ 0.6351, above its 50 Daily moving average @ 0.6522 , below its 100 Daily moving average @ 0.6719 and below its 200 Daily moving average @ 0.6969

The previous day high was 0.6491 while the previous day low was 0.6406. The daily 38.2% Fib levels comes at 0.6458, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6439, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.6427, 0.6375, 0.6343
• Pivot resistance is noted at 0.6511, 0.6543, 0.6595

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