© O Financista. The trend remains bearish on EUR/USD after yesterday’s fall
Investing.com – The trend remains broadly bearish on the EUR/USD pair on Wednesday morning, after further losses yesterday, and a low of 1.1381, the lowest since
Recall that the Euro had been largely influenced by the Book, which has fallen sharply in the course of the day yesterday in anticipation of the rejection of the agreement on the Brexit by the Parliament in the UK, causing the Euro to fall.
Parliament UK has therefore, as expected, rejected the agreement of Brexit negotiated by Theresa May, however, the fact that this decision has been widely anticipated has led traders to “buy the news” after you have “sold the rumor”, a phenomenon that can often be seen in the face of major events whose outcome is widely anticipated, and the pair GBP/USD has sharply bounced in the course of the night.
However, if the EUR/USD pair had been penalized by the decline in GBP/USD, the rise of the Book yesterday evening and this night there was very little advantage to the single currency, which is struggling to hold above 1.14, a threshold test for the first time in 10 days yesterday.
The speech of Mario Draghi in front of the Parliament yesterday, also plays a role in the decline of the Euro, the head of the ECB has shown himself to be prudent, considering, in particular, that economic developments had been weaker than expected in the euro area, and that”a high degree of monetary support is still needed to support the continued strengthening of the domestic tensions on prices and overall inflation in the medium term”.
From a graphical point of view, if EUR/USD confirms the break below 1.14, the profile immediately bearish will be confirmed, with potential targets sellers 1,1350 and 1.13 in a first time.
If the threshold of 1.14, is permanently returned, the area of 1,1440-50 will be the first resistance to monitor, before 1,1480-1,15.
Finally, in regards to the news of the day, it will be necessary to remain particularly attentive to any statements regarding the next event to wait about a Brexit, some voices are rising already for the organization of a second referendum that could call into question the exit of the UK from the EU.
Side economic calendar, investors will need to monitor to 14: 30 retail sales US, as well as the indices of the import price, and export to their possible influence on the Dollar.
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