Despite the election results are increasing the risk of reviving the independence drive in the province, the scale of the issue itself is limited and it will hardly challenge the growth potential of the whole euro area. So these immediate local political risks won’t hurt euro much in the longer term. Considering doubts in the US tax overhaul efficiency and subdued in the United States, dollar will likely remain vulnerable, which will offset the current local risks for euro .
On Wednesday, the EURUSD pair peaked at the 1.19 1st December high and pulled back slightly. This resistance stays key to the upside. The break above will introduce scope to the 1.1945 area. As long as euro remains above 1.1780, the immediate scenario is relevant