EUR Has No Time To Rest

Euro got hit again. This time from the results of the referendum on Catalan independence. Yesterday 90% of Catalans voted for independence but the turnout was 42.3%.

After the German elections last weekend with the contradictory victory of Angela Merkel’s party, another sign of separatism is the last thing EU and euro need at the moment.

In the morning EUR/USD lost almost 0.45% and touched the session lows at the 1.1730 area. The pair has its local support here and it seems that for now the level can hold the pressure. Another political turmoil may push the euro currency through the round figure 1.1700 and after that towards the August lows at 1.1662.

It’s hard to say whether the bears may count on the breakout of this area. But, in case it happens we can say goodbye to the medium term bullish trend and wish EUR a nice trip to the 1.14s.

Besides there is one more thing to consider. During the last weekend, Trump interviewed Fed´s Jerome Powell and Kevin Warsh as possible candidates to replace Janet Yellen as head of the FOMC. They both distinguished by being hawkish on monetary policy. So, this may work in dollar’s favour as well.

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