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The upcoming elections to the European Parliament and the strong US dollar continue to put pressure on the EUR / USD pair

May 21 2019, 04:43 PM (BDT) | Fortfs.com

The EUR / USD pair held trading on Monday in a very narrow price range, while maintaining the lateral directionality of the movement. This dynamic was quite expected, since there was practically no important news on the market that could significantly change the balance of power in the market.

Today at the Asian trading session, investors watched the performance of Jerome Powell, who noted the increased risks for the US economy, due to the company's debt obligations reached historic highs relative to the size of the economy. But, the US dollar practically ignored these statements and continues to trade in the green zone due to the weakening of other G7 currencies. Among the most important events that may affect the dollar today is the publication of data on sales in the secondary housing market and the speech of the FOMC member Rosengren.

The European currency remains under pressure in the run-up to the elections to the European Parliament, which will be held from 23 to 26 May. Most likely, until the official results are announced, the demand for the euro will remain low. A significant pressure factor for the currency remains the difficult economic situation in the EU, as well as the risks associated with Brexit. There are no important economic news in Europe today, so the main influence on trading will be provided by the US dollar and the stock market vector.

On the chart, after a slight correction, the currency pair continued to move down. Now the price has reached the intermediate target at the level of 1.1140, from which we can expect the development of a rolling back movement. But over a longer distance, the bearish movement scenario with the target of 1.1100 remains the priority.

· Resistance levels: 1.1180, 1.1220, 1.1260.

· Levels of support: 1.1140, 1.1100, 1.1000.

The main scenario - a correction in the area of ​​1.1180 and a new wave of decline to 1.1100.

Alternative scenario - consolidation below 1.1140 and decline to 1.1100.

On the chart, the bearish trend still prevails, while fundamentally there are no factors on the market that could turn the price upwards. Therefore, within the day, we give priority to shorts that are worth looking for near the 1.1180 mark.


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