Fundamental analytics

The results of the elections to the European Parliament are putting pressure on the European currency

EURUSD

The EUR / USD pair has completed the trading week with a fairly confident growth, which became possible by reducing the pressure from the US currency. A series of unconvincing economic statistics from the United States weakened interest in buying the dollar, as investors fear a slowdown in economic activity in the country, amid a deteriorating situation in the world trade and the influence of other negative factors.

In the first half of the new trading week, investors will focus on the outcome of the recent elections to the European Parliament. According to exit polls, the majority in the European Parliament retained the pro-European forces, but mostly these are not the parties that have held power in Europe for the past ten years. Experts are already saying that the confrontation between the old and new political forces in the European Parliament can significantly complicate the adoption of new political and economic decisions in the EU, which will be a negative factor for the European currency.

The situation in Greece, where the ruling left-wing party "SYRIZA" was defeated by the conservative party "New Democracy", is again causing concern. Immediately after the appearance of the first voting results, Greek Prime Minister Alexis Tsipras announced the holding of early elections in the country.

Therefore, against the background of general political uncertainty in Europe and the problems associated with Brexit, today we can expect a weakening of the European currency and a decline in the EUR / USD pair.

On the chart, the price has met resistance at the upper limit of the medium-term descending channel and now the movement is developing downwards. The main target for sellers is the level of 1.1180, but in case of a breakdown of this mark, the bears can shift to the level of 1.1140.

· Resistance levels: 1.1215, 1.1260, 1.1320.

· Support levels: 1.1180, 1.1140, 1.1100.

The main scenario - a decline to 1.1180.

Alternative scenario - consolidation below 1.1180 and decline to 1.1140.

The market is now dominated by a moderately negative news background, which will help push down the pair EUR / USD. Therefore, within the day we consider the shorts of the instrument from the level of 1.1215.

 

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