FX traders should eye this level closely if Harris wins
Nov 5 (Reuters) -FX traders should beware of the risk to a key downside level in the U.S. dollar, which is already under pressure, if Kamala Harris wins the U.S. presidential election.
The dollar softened ahead of what is expected to be a close election, while options volatility soared after recent polls dented some market bets on a victory for Republican Donald Trump. Speculative longs, which almost doubled recently, could be set for some serious pain. Especially if Harris wins the presidential election.
The USD index, which tracks the dollar against a basket of six major currencies, last week faltered ahead of the major 104.719 Fibo, a 76.4% retrace of the 106.13 to 100.15 (June to September) drop.
A Harris win could see the USD index drop under key 103.573 Fibo support, a 23.6% retrace of the 100.15 to 104.63 (September to October) rise, which in turn would unmask the Oct. 21 103.41 low. Conversely a Trump win would likely lead to a test of the 104.719 Fibo.
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Daily Chart: https://tmsnrt.rs/3CemPMg
(Martin Miller is a Reuters market analyst. The views expressed are his own)
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