The EUR/USD has tried to recover ground at the beginning of this Tuesday, but has found a barrier in the European opening in the 1.1750 area after having raised 20 pips from the intraday low of the Asian session at 1.1730.
EUR weakened by the possibility of new elections in Germany
The euro was losing strength as it progressed yesterday and it was confirmed, in the evening, that Angela Merkel does not rule out the call for new elections following the impossibility of forming a strong government coalition. Comments on this matter will be key in the next hours for the operators of the common currency.
The EU’s Financial Stability Report and Benoit Coeuré’s speech in Frankfurt on “Economic convergence: before or beyond fiscal union” stand out on the European agenda today. On the other side of the Atlantic, USA will publish the Chicago Fed’s national activity index and the existing housing sales data for the month of October.
Perspective EUR / USD
While the cross is trading at 1.1745/50, 0.09% above its opening price, Stoyan Mihaylov, financial analyst at DeltaStock.com, points out that the pair’s failure to stay close to 1.1820 shows a negative trend, so one can expect a fall to support area 1.1690. This point of support can be a basis of confidence for a subsequent upward movement towards area 1.1780.
Written by: FXStreet