EUR/USD rises back to 1.1430 as Congress is likely heading for a spit

• Polling website FiveThirtyEight is reporting that the Congress is heading for a split as expected.
• That outcome is seen leading to policy paralysis and political turmoil in Washington.
• The EUR/USD has risen back to 1.1430.

The EUR/USD has bounced off the 200-hour exponential moving average (EMA) of 1.14 and is currently trading at 1.1438.

The dollar is being offered again as Congress is likely heading for a split. The likelihood of the Democrats winning the House has jumped back to 70 percent, according to polling website FiveThirtyEight. Meanwhile, the Republicans are likely to retain the Senate.

A Democratic-controlled House paired with a Republican-controlled Senate would mean President Donald Trump and the GOP would have a hard time enacting any major new legislation.

Further, it is feared that the Democrats would use the House majority to pursue investigations into Trump’s Russian ties and financial affairs. No wonder, the greenback is losing altitude.

The EUR/USD is breaking out of a falling wedge, indicating a bearish-to-bullish trend change.

EUR/USD Technical Levels