EUR/USD today: the euro is under pressure of political risks

Trades on Monday opened with a noticeable decline in the euro across the entire spectrum of the market, which was caused by the failure of negotiations on the ruling coalition in Germany. With the start of the European stock indices, the single currency has fully recovered on the persistence of negative sentiment and the flight of investors into the euro.

Events for today:

• At 16:00 and 18:00 – the speech of the head of ECB, Draghi.

There are no significant events today, but Draghi’s speeches can provoke the growth of volatility in trading.

The pair EUR/USD remains in a downward trend, despite the rapid recovery. In addition, the pair EUR/USD is limited to a significant resistance level 1.1820 (Fibo.50.0 from the September’s high). But, since the day is not marked by important news, one should expect movement in the range from 1.1800-20 to 1.1750-30. Given the continuation of the downtrend, zone 1.1790-1.1820 should be considered for sales with the target of 1.1720-30.

Hanzenko Anton