EURUSD, H1
The Euro is mostly trading firmer so far today, with EURUSD having edged out an 11-day high at 1.1215, before rolling over to move lower. EURJPY and EURCHF concurrently recouped recently lost ground too.
EURGBP, in contrast, descended to a five-day low as the Pound rebounded from recent trend lows. Early results from the EU parliamentary elections suggest that pro-EU parties have held their ground for the most part. In the UK, which is under particular scrutiny given Brexit, the Brexit Party won 31.6% of the vote, though this was balanced by a strong showing for pro-Remain parties, led by the Liberal Democrats, which took 20.3% of the vote. EURUSD is up from the two-year low that was seen last week at 1.1107. The move has been mostly driven by the Dollar coming off the boil after the latest risk-off squall passed. This has seen the narrow trade-weighted USD index ebb back from 24-month highs. In the bigger picture, and the Daily time frame, EURUSD remains in a bear trend which has been evolving since early 2018. This was reaffirmed by the new trend lows of last week, although the key 20-day moving average was breached at Friday’s close. Resistance comes in at 1.1225 and the 50-day moving average ahead of the 1.1245-50 zone.
Stuart Cowell
Head Market Analyst
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