Fundamental analytics

EUR / USD is trading at 3-week lows

EURUSD

The EUR / USD pair is timidly trying to recover at least part of the lost positions after a five-day decline. The very strong dollar and the lack of positive economic and political news from Europe remain the restraining factor for the European currency.

None of the political parties in Spain was able to gain an absolute majority in the parliamentary elections, which increases the political and economic uncertainty in this country. This is the second parliamentary election in Spain this year.

In the economic calendar today there are no important news from Europe and the United States, therefore, the main driver of the market will remain news in the field of international trade and the situation on the stock market. The European currency can partially recover previously lost positions only due to easing pressure from the dollar. At the time of writing, the dollar index was trading at a 0.1% decline.

There are no positive signals on the chart yet. A downward trend is dominant locally, so any corrective pullback should be considered as an opportunity to enter short positions. Today it is worth paying attention at the levels of 1.1055 and 1.1090.

Resistance levels: 1.1055, 1.1090, 1.1130.

Support levels: 1.1020, 1.1000, 1.0950

The main scenario is a correction to 1.1055 and the resumption of the downward movement.

An alternative scenario is a decline to 1.1000 and corrective growth.

Locally, the news background on the market can be described as neutral. There are no signals on the chart to enter the market at current prices. Inside the day, we consider shorts when the price rolls back to the levels of 1.1055 and 1.1090.

 

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