EURUSD: the Catalan factor won’t stay long

FX:EURUSD   Euro / U.S. Dollar
Euro had to interrupt its 4-day winning streak after the news that pro-independence parties secured a renewed majority in the Catalan parliament. Such election results reduce hope for mitigating the constitutional crisis in the country. As a result, EURUSD dived to lows in the 1.1816 area where it met “demand on dips” and recovered partially to the comfort zone at 1.1850.
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 inflation 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 bullish scenario is relevant
EN English (UK)
EN English
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
HE עברית
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out