Sunday was a key day for Spain political’s scenario, as the elections took place, with the Partido Popular (PP), Mariano Rajoy’s party, as winner, with 137 seats, while PSOE took 85 and Podemos with 32. The required seats to form a government are 176 and that’s adds more uncertainty around European markets, as they’re still digesting the Brexit referendum’s results. With that being said, PP should form alliances in order to add a kind of “stability” in the current spanish political situation. Remind that “Partido Popular” is conservative-wing, while PSOE is socialist and Podemos is left-wing.
Current EUR/USD overview at H1 chart is showing a strong resistance for this week around the 1.1169 level, which was formed after the post-brexit decline and later rebound during last friday’s session. European political’s situation isn’t helping to the EUR and with the spanish elections, bearish outlook gains momentum and eventually, a breakout below the 1.0940 level will expose the 1.0850 price zone at least.
Origin: FX BAZOOKA
