EUR/USD (current price: 1.1052)
The U.S Dollar continued to perform well on Monday, despite the dovish speculation about the FED’s rate hike schedule. The Euro got weaker compared to its most important counterpart, as the effects of the Brexit could be more widespread than expected, as more and more political parties threaten with referendums about exiting the EU. The negative U.S. Trade Balance data wasn’t enough to stop the rise of the Dollar, as the most important currency pair fell to close near the all-important 1.10 level.
Our assessment: EUR/USD is now below the 200-day MA, and although the short-term trend is now declining, the long-term picture remains neutral as long as the lows from 2015 around 1.05 hold.
