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EUR/USD Daily Fundamental Forecast – May 22, 2017

By:
Colin First
Published: May 22, 2017, 03:33 UTC

The EURUSD pair has had a lazy day since the morning as there has not been much news over the weekend. With no fundamental news to push the pair in any

EUR/USD Daily Fundamental Forecast – May 22, 2017

The EURUSD pair has had a lazy day since the morning as there has not been much news over the weekend. With no fundamental news to push the pair in any specific direction, the pair continues to consolidate, which is something that is usually expected at the beginning of the week, based on the lack of news over the weekend. Trump is off on his share of international visits and that has given a break to his tweets and his other domestic troubles and this is also one of the reasons for the markets to be silent and await the next set of developments.

EURUSD Continues to Move Up

The EURUSD pair had continued its rise last Friday as the dollar longs get unwound. The pair made some serious headway against the dollar on Friday as well and finally managed to break through the 1.12 region and looked good for more. Though it did not make much progress beyond the 1.12 region on Friday, the fact that there was not much selling in that region and that the pair continued to trade near the range highs to close the week showed that the trend was still intact and we could continue to expect the pair to move up in the coming week as well.

EURUSD Hourly
EURUSD Hourly

Over the last week, there have been talks in a small part of the market about how there could be moves to impeach Trump from his Presidency in due course of time. These are just rumors for now but as his political troubles continue to increase and it also leads to a policy paralysis in his Presidency, then these rumors could start getting louder and louder. Already, the issues in the political circles have been enough to push back the proposed rate hike from the Fed in June and it remains to be seen what other policies are going to get affected due to his troubles.

A combination of the above has been the reason for the dollar to be on the backfoot for the past week or so and we do not see any respite for the dollar this week as well. Looking ahead to the rest of the day today, there is not much news from the Eurozone or the US for the day and so we can expect some consolidation to happen, this being the first day of the week, but with a bullish bias.

About the Author

Colin specializes in developing trading strategies and analyze financial instruments both technically and fundamentally. Colin holds a Bachelor of Engineering From Milwaukee University.

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