We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
GBP/USD
Mixed
USD/JPY
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
Real Time News
  • Tune in to @CVecchioFX 's #webinar at 7:30 AM ET/12:30 PM GMT to prepare for major event risk in the week ahead. Register here: https://t.co/d5MAOTwJAg https://t.co/L9yxAl0DQh
  • Commodities Update: As of 11:00, these are your best and worst performers based on the London trading schedule: Silver: 0.99% Gold: 0.75% Oil - US Crude: -3.27% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/CWSxvMvssa
  • Forex Update: As of 11:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.39% 🇨🇭CHF: 0.20% 🇬🇧GBP: 0.12% 🇨🇦CAD: -0.29% 🇳🇿NZD: -0.66% 🇦🇺AUD: -0.79% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/RfsfqrEjxz
  • RT @Schuldensuehner: Ouch! Ifo casts doubt on German economic turnaround. Business climate fall from Dec and came in at 95.9 below consensu…
  • RT @iv_technicals: $VIX curve now inverted 👀 Here's the 1-week shift: https://t.co/comrpraJUe
  • RT @lisaabramowicz1: Someone seems to be cashing out of high-yield debt in a big way. The $18 billion U.S. high-yield bond ETF $HYG saw its…
  • Natural Gas trading is popular among traders due to its volatility. How can you trade this? Find out here: https://t.co/qbLCv6RP0H https://t.co/4igP9Fq2S7
  • Indices Update: As of 11:00, these are your best and worst performers based on the London trading schedule: Wall Street: -1.66% US 500: -1.67% Germany 30: -2.26% France 40: -2.31% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/mHYe7I3WLO
  • EUR/USD Price: A Decline Then a Possible Correction – Euro vs USD Outlook More details in the link below: https://www.dailyfx.com/forex/technical/home/analysis/eur-usd/2020/01/27/EURUSD-Price-A-Decline-Then-a-Possible-Correction-Euro-vs-USD-Outlook-MK.html?CHID=9&QPID=917714 https://t.co/AGOo5PibPg
  • Tune in to @nickcawley1 's #webinar at 6:30 AM ET/11:30 AM GMT to prepare for key UK events and markets in the week ahead. Register here: https://t.co/xewSeUoDaT https://t.co/ZHX85nxXUu
Euro Price Slide Set to Continue as European Elections Draw Closer

Euro Price Slide Set to Continue as European Elections Draw Closer

2019-05-21 09:15:00
Martin Essex, MSTA, Analyst and Editor
Share:

EUR price, news and analysis:

  • EURUSD is continuing the drift lower of the past week on concerns that the latest European Parliament elections will see a rise in populism and Euro-skepticism.
  • That’s bad news for the Euro, which could yet lose more ground against a backdrop of trade wars and Brexit.

Euro price weakness may persist

European Parliament elections take place this week, beginning Thursday and ending Sunday, with the results likely to confirm the rise of populism and Euro-skepticism. That could spell further losses for the Euro, which has already dropped to its lowest level since May 3 and has been easing for the past week.

EURUSD Price Chart, Hourly Timeframe (May 13-21, 2019)

Latest EURUSD price chart.

Chart by IG (You can click on it for a larger image)

Click on this link for a preview of the main events in the Eurozone this week

And here for the technical outlook for the Euro

For traders, one caveat is that this expected move away from the EU’s mainstream political parties may be already priced in to the EURUSD exchange rate. A second is that price volatility remains low and the elections look unlikely to boost it.

However, investors will have time to analyze the election outcome thoroughly between the results Sunday and the opening of markets Monday – particularly necessary as the results will be clouded by national concerns in each EU country, with the debate centering on Brexit in the UK, for example. Still, looking further ahead, a good showing by far-right political parties will likely raise doubts again about the stability of the EU.

There could also be a power vacuum as a move away from center-right and center-left politicians leaves whichever party wins the most seats having to rely on resurgent Green parties for a majority.

From a long-term technical perspective, the downtrend that began eight months ago remains in place and a further decline to 1.10 looks possible. Sentiment data also point to a weaker EURUSD, with 59% of retail traders long and just 41% short – a bearish signal from a contrarian viewpoint.

Euro price outlook worsens as Italian politics move into focus

Resources to help you trade the forex markets:

Whether you are a new or an experienced trader, at DailyFX we have many resources to help you:

--- Written by Martin Essex, Analyst and Editor

Feel free to contact me via the comments section below, via email at martin.essex@ig.com or on Twitter @MartinSEssex

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.