Today, on May 26th, the common European currency is trading around 1,3620. This means that EURUSD is a little bit down against Friday’s levels. The current weakening of the common currency is taking place in advance of the forthcoming monetary easing by the European Central Bank and a change of attitude towards the EU among new members of the European Parliament.
At the same time, Germany's Ifo published its consumer sentiment index right in advance of today's European trading session. This index remained unchanged at 8,5, Market Leader reports.
At the same time, trading experts assume that the common currency may see further weakness against its American counterpart because of excessive skepticism towards the EU’s austerity measures that are currently underway.
Earlier today, market participants are focused on the results of the parliamentary elections in the EU. The elections took place in 28 countries on March 24-25th. If euro-skeptic parties dominate the parliament, we may well expect the Euro to keep on losing its value against the US Dollar.
It should be noted that UK banks and marketplaces are closed for a day-off. The same holds true for US markets (Commemoration Day). That is why there is no point in expecting volatile markets today.
Today’s key event is Mario Draghi’s speech. Mr. Draghi is President of the ECB. During the speech the president is likely to hit at the ECB’s further monetary policies.
EURUSD
According to the comprehensive analysis of EURUSD H1 conducted by Masterforex-V Academy. The chart indicates the mid-term downtrend is still underway. The downswing started on May 19th form 1,3733. So, the downtrend is still underway and taking place within the scope of a descending MF sloping channel (the channel is built through local highs of the descending move).
Until the price is below the border of the MF sloping channel, the bas is bearish, which means a further downswing is more likely. The price is currently consolidating within the scope of the1,3614-1,3641 range., close to the lower border around 1,3622. The price is forming a triangle. The direction of the future breakout will prompt us the direction of the mid-term tendency.
A break above the top will give way to 1,3641 and further up to 1,3658. The scenario is marked green. At the same time, a break below the bottom will give way to 1,3610 and 1,3581. The scenario is marked red.
