27.05.201907:27 Forex Analysis & Reviews: Forecast for EUR / USD for May 27, 2019

EUR / USD

Last Friday, the euro increased by 24 points in anticipation of the results of elections to the European Parliament and the decline in the volume of orders for durable goods in the US, which in April estimate showed a decrease of -2.1% against the forecast of -2.0% and growth of 2.6% in March. The results of the European elections were even slightly worse than expected; despite the receipt by the "Alliance of Liberals and Democrats for Europe" with the E. Macron's movement 102nd places in the European Parliament (3rd place after the European Party and the Progressive Alliance of Socialists and Democrats), France's party won the "Marine Le Pen National Association", which further shatters the position of President Macron. In Italy, the League won (M. Salvini), having won 57 seats in the European Parliament against 37 earlier. In general, it is obvious that the Eurosceptic sentiment is growing.

The price stopped at the Fibonacci level of 100.0%. Since today is a holiday in the USA and the UK, the price is unlikely to deviate much from this level. On the four-hour chart, Marlin oscillator is not in a hurry to turn down, respectively, the euro may still continue to grow, say, to the price channel line in the area of 1.1260, which is close to the highs of May 1 and 13.

The main focus for investors will now be the discussion in the new European Parliament of candidacy for the post of head of the ECB. As you know, the main contender is the head of the Central Bank of Germany, Weidmann. This is a strong positive impulse for the Euro. But, Germany may prefer its leadership in the European Commission. Thus, we are waiting for developments.