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