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Forex pairs in this Article » EUR/USD (San Francisco) - EURUSD price action is expected to be quite limited before the U.S. presidential election results are tallied; afterward, market participants will begin to digest the implications of an Obama or Romney victory.

According to a report by Reuters, the general view is that an Obama win would support bonds; given that the president's economic policies involve keeping interest rates low. On the other hand, a Romney victory would favor equities; given his pro-business perception.

"While a winner will naturally surge, the result of the election will likely end with the same outcome when it comes to forex market: the end of uncertainty," says Valeria Bednarik, Chief Analyst at

From a technical standpoint, Ms. Bednarik adds: "Price needs to extend beyond the 1.2880 level to be able to extend its recovery today. Loss of 1.2745 on the other hand, will signal a stronger bearish continuation that will target this week the 1.2610 price zone."

Later in the global day, some attention may be given to Greece's parliamentary vote on new austerity measures, which could influence weather or not the nation will receive the next tranche of financial aid.

EURUSD stands quiet above the 1.2800 handle. Asian stocks are likely to trade with a positive bias after Wall Street closed higher overnight Tuesday.
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