EUR/USD, GBP/USD, and AUD/USD on the rise after Georgia runoff

The dollar has come under pressure after the Democrats look to have taken the Senate, with EUR/USD, GBP/USD, and AUD/USD all gaining ground.

Transcript

EUR/USD sharply higher as risk-on sentiment hurts dollar

EUR/USD has been gaining ground this morning, with growing expectations of a Democrat victory in Georgia looking to pave the way for a fresh bout of stimulus once US President-elect Joe Biden takes office.

With the price having broken through the $1.2327 overnight peak, the intraday uptrend remains key here. With the pair starting to pull back, short-term weakness is seen as a buying opportunity. As such, long positions are favoured unless the price breaks below the $1.2275 swing low.

GBP/USD likely to gain ground from here

GBP/USD has also been on the rise, with the recent recovery phase gradually taking shape after the lockdown-fueled weakness on Monday.

Nevertheless, with the pair on the rise, it looks likely we will see further gains take hold unless we break from this current trend of higher lows. As such, a bullish view is in play unless price falls back below the $1.3592 support level.

AUD/USD likely to benefit from Democrat sweep

AUD/USD has been on the rise in anticipation of a full Democrat sweep in congress, with Biden’s plan to enact a huge green infrastructure program likely to bolster commodity prices.

With the dollar also coming under pressure, we are looking at a potential long-term uptrend for AUD/USD. Looking at the pair from a short-term perspective, the creation of higher lows will remain key to staying long for this pair. As such, a bullish outlook holds unless price falls back below the $0.7733 low.

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