EUR / USD - after a decline in early trading, euro feels confident

Last week, EUR/USD pair showed good gain, bulls achieved no serious success. US dollar is still under pressure amid domestic political factors, primarily related to the discussion of the tax reform and the ongoing investigation of "Russian intervention" in the elections in the United States. The demand for a single European currency remains very limited, since despite the successes in economic growth, inflation in the EU remains low and does not contribute to the launch of a program of tightening monetary policy by the European regulator.

Today amid news from Germany as Merkel failed to form a coalition, European currency moved under pressure. Increasing volatility might be expected today at the speech of the ECB President Mario Draghi, but only if his speech will contain some new for the market participants. On the four-hour chart, the corrective pullback is actively developing. The 200-day moving average line provides locally support for the price, but the question is how long it will to hold the price.

Recommendation – out of the market

Fort Financial Services