Today, on May 23rd, the common European currency is trading 0,04% lower against the Dollar. The price is currently fluctuating around 1,3645. In general, the price is consolidating within the scope of the 1,3639-1,3651 range. This may tell us about the fact that big-scale traders and investors are uncertain and do not want to enter the market at the end of the trading week in advance of the forthcoming presidential election in Ukraine scheduled for Sunday, May 25th, Market Leader reports.
Indeed, Ukraine is finally going to hold presidential elections on Sunday. Russia seems to going to abstain from recognizing the results of those elections since there is still a legitimate president, who was deposed. Therefore, geopolitical risks increase. This is one of the reasons why many market participants do not want to risk at the end of the trading week, especially in advance of such an even that will attract a lot of attention throughout the globe.
Controversial economic reports are another reason why the common currency is currently showing some weakness against its American counterpart. According ot the latest reports. The eurozone's service PMI increased from 53,1 up to 53,5, thereby coming out better than expected. Still, the eurozone's manufacturing PMI dropped from 53,1 down to 52,5 over the same reporting period. At the same time, economic reports testify to the fact that Germany remains Europe's strongest economy.
At the same time, the ECB seems to be determined to ease its money-and-credit policy again in June in order to stimulate inflation and economic growth in the region. Most likely, massive profit taking at the end of the trading week may result in a further decline of EURUSD.
EURUSD
According to Masterforex-V Academy, the mid-term downtrend of EURUSD is still underway. This is confirmed by the H4 chart. The price is moving within the scope of a bearish MF sloping channel (marked red). This tendency is telling us that the bears are currently dominating the market.
If the price comes out of the 1,3634-1,3658 range by breaking below its bottom, we are likely to see another decline to 1,3630 and may be lower. The scenario is marked with a red arrow.
Alternatively, if the price breaks and consolidates above the bottom of the range, it will give way to a further rally up to 1,3688 and higher. If he price breaks above the top of the MF sloping channel defending the entire downtrend, we may well see a tendency change to give the bulls an edge. If this is the case, a break above 1,3688 will give way to 1,3725. The scenario is marked with a green arrow.
Трейдеры кафедры бинарных опционов Академии Masterforex-V отмечают, что получению максимальной прибыли при явном тренде вниз по паре евро/доллар на Форекс будут способствовать позиции «селл», открытые по бинарным опционам.
