The Euro holds firmly
The single currency keeps consolidating near the mark 1.17, being unable to overcome the psychological level amid weak demand and generally low activity of trading before the onset of the weekend. Resistance around 1.1720 is the key for further recovery attempts.
However, we must pay tribute: the single currency is holding pretty well, considering that in Spain there was a change of government after Prime Minister Rajoy implicated in corruption scandal, was given a vote of no confidence.
Ignored the Euro and statistics on business activity in manufacturing, where the rate of Germany has exceeded forecasts, amounting to 56,9, and Eurozone PMI has coincided with market expectations at 55.5.
Such apathy is partly due to low trading volumes, while the downside risks for EURUSD limit the relative weakness of the dollar, demand for which in the last days few died.
As for the technical picture, the further tone of the pair in the short term will depend on the fate of the level of 1.17. If by the end of today’s trading quotes and not be able to gain a foothold above this level, downside risks will remain in force and implemented when the pretext for the resumption of purchases of the American currency.
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