EURUSD : PRESSURED BY ECONOMIC AND POLITICAL UNCERTAINTY
- The market has been trading above a bullish trendline since mid-Arpil ; the mid-term trend was then bullish.
- During the last few trading sessions, the pair has been put under significant pressure as prices registered a sharp pull-back from 1.0916 to 1.0720 currently.
This sell-off led the market to a bearish break-out of its mid-term bullish trendline, invalidating the mid-term bullish trend.
This sudden move can be explained by two factors :
1) An increased appetite for the USD currency, taking place ahead of key US CPI data and an FOMC decision on rate, both due tomorrow.
2) Rising political uncertainty in Europe after far-right movements in Germany, France, Italy and Austria secured much more seats than expected in EU parliament during last Sunday's elections.
- This is seen as a bearish situation for the pair. The mid-term bullish trend is now officially invalidated and the market's inability to bounce back highlights the fact that sellers are in control.
Next support zones can be located towards 1.0720, 1.0667 before the crucial 1.0600 level.
However, we expect the market to remain volatile as investors brace for tomorrow's key macro data from the US.
Pierre Veyret, Technical Analyst at ActivTrades
The information provided does not constitute investment research. The material has no been prepared in accordance with the legal requirements designed to promote the independence of investment research and such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
- During the last few trading sessions, the pair has been put under significant pressure as prices registered a sharp pull-back from 1.0916 to 1.0720 currently.
This sell-off led the market to a bearish break-out of its mid-term bullish trendline, invalidating the mid-term bullish trend.
This sudden move can be explained by two factors :
1) An increased appetite for the USD currency, taking place ahead of key US CPI data and an FOMC decision on rate, both due tomorrow.
2) Rising political uncertainty in Europe after far-right movements in Germany, France, Italy and Austria secured much more seats than expected in EU parliament during last Sunday's elections.
- This is seen as a bearish situation for the pair. The mid-term bullish trend is now officially invalidated and the market's inability to bounce back highlights the fact that sellers are in control.
Next support zones can be located towards 1.0720, 1.0667 before the crucial 1.0600 level.
However, we expect the market to remain volatile as investors brace for tomorrow's key macro data from the US.
Pierre Veyret, Technical Analyst at ActivTrades
The information provided does not constitute investment research. The material has no been prepared in accordance with the legal requirements designed to promote the independence of investment research and such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
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