EUR/USD Daily Forecast – Fiber Leveled Up Near 1.1211 Marks as Farage Grabs a Majority

The USD Index weighed lower as Euro got boosted slightly amid EU election results. Farage’s Brexit party take the lead. Going forward, Euroscepticism might have good control over the European currency.
Nikhil Khandelwal

The Euro pair was hovering near 1.1211 levels today morning. The EUR/USD pair seems to continue the uptrend followed since the Friday. The pair recovered massively on the backdrop of the European Parliamentary elections and declining US Dollar Index. The EUR/USD pair opened up near 1.1203 levels and went up marking a fresh high near 1.1214 levels.

EU Parliamentary Elections Status Quo

The final results of the May 23-26 EU election results were out on Sunday European evening. Results revealed the victory the Brexit Party of the UK has received higher numbers of votes in these elections. The Party head, Nigel Farage, appeared winning the MEP seat of South East England in EU elections. In his recent interview, he expressed his opinions to take Brexit in the new Parliament. Now there is some room for Brexit without any deal, as the Nigel Farage is profoundly influencing candidate for UK’s exit. Whereas, the Conservative group had experienced a loss as they failed to get majority votes.

This new European Union’s Parliament would showcase equal distribution of power as the new legislation will have MP’s who are eurosceptic and pro-environment. On the bid of the Eurosceptic parties, victory in the 2019 EU elections might impact the currency pair significantly. The risk of Euro to drop persist, as these parties would tend to influence in Key EU Functions such as the passing of Budget.

During the Asian session, the Greenback which is most robust and computed against the six rival currencies appeared near 97.58 levels. As the US-China trade tensions continued impacting the American Dollars, the USD plunged. The pair attempt to record fresh high in the Morning session following a slight fall in the USD today.

EUR/USD Influencing Events

On Monday, the US will celebrate the ‘Memorial Day’ hence the US market remains closed. Whereas, there are no Euro-specific economic events lined-up for the day. The investors will continue to watch for the happenings of post-EU election results and any critical news on US-China Trade deal.

Technical Analysis

EURUSD 60 Min 27 May 2019

The technicals tend to reverse in the mid-morning trading session. The movement indicating lines that moved in the upper Bollinger Band was slowly drifting downwards. The pair had already crossed moved the Centerline of the Bollinger Bands or the EMA near 1.1204 levels. This movement shows the end of a small rally started on May 23. After consistently pointing above 60 levels in the last few sessions, the RSI appeared dropping approaching 50 levels. However, definite trend possibility stays alive as the pair was trading above the significant SMAs. The 50-days SMA traveled above crossing path with the 200-days major SMA and might collide with the Fiber. If the 50-days SMA reaches above the pair, then a bearish sentiment may prevail in the near-term sessions.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.