HelenRush

Merkel And EUR Are Shell-Shocked

FX_IDC:USDEUR   U.S. Dollar / Euro
On the weekend Angela Merkel proved her might having won German elections one more time. It’s hard to say that it feels like a victory, with the worst result since 1949 at 32,9%.
Merkel must now find coalition partners. And we already know that Martin Schulz, the head of center-left Social Democratic Party, won’t join Angela’s party and go into opposition.
EUR/USD greeted new week with strong bearish gap and touched the lows at 1.1895 after the opening bell. Markets thought the results of the elections promise certain degree of uncertainty and risks.
That said, euro may suffer short term but only till the markets recover from the blow. During the European session the pair has been trying to recover some ground but hasn’t succeeded.
To fill the gap completely euro has to move back to the resistance area at the 1.1950 handle.
We don’t expect a lot of triggers for EUR for today though. If it breaks below September, 20th lows at 1.1862 bears will be happy to push it towards next support at 1.1837.
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