26 May 2014
EUR/USD a tad softer on EU vote
FXStreet (Bali) - Following Friday's slide to a new low not seen since February 13 this year, the EUR/USD is trading a tad softer in the opening of the Asian markets, presently at 1.3622 vs 1.3628 NY close.
The softness in the Euro at the start of the new week comes mainly as a result of the EU parliament elections's vote, which has seen support for far right and Euroskeptics' parties increase significantly. ECB's Governor Mario Draghi, who gave the opening comments at the ECB summit in Portugal, offered no new clues on the policy outlook, with no policy comments made in his speech.
Technically, Valeria Bednarik ,Chief Analyst at FXStreet, notes: "The daily chart shows a strong bearish tone, with 20 SMA now capping the upside around 1.3780 also strong static resistance level and probable top in case of unexpected recoveries. Momentum has gathered strength towards the south and maintains it along with RSI that approaches the 30 level, all of which is also supportive of more falls."
The softness in the Euro at the start of the new week comes mainly as a result of the EU parliament elections's vote, which has seen support for far right and Euroskeptics' parties increase significantly. ECB's Governor Mario Draghi, who gave the opening comments at the ECB summit in Portugal, offered no new clues on the policy outlook, with no policy comments made in his speech.
Technically, Valeria Bednarik ,Chief Analyst at FXStreet, notes: "The daily chart shows a strong bearish tone, with 20 SMA now capping the upside around 1.3780 also strong static resistance level and probable top in case of unexpected recoveries. Momentum has gathered strength towards the south and maintains it along with RSI that approaches the 30 level, all of which is also supportive of more falls."