Forex Technical/Fundamental Analysis & Forecast by RoboForex
Fibonacci Retracements Analysis 20.08.2019 (EURUSD, USDJPY)
EURUSD, “Euro vs US Dollar”
As we can see in the H4 chart, EURUSD has reached a very significant correctional level, 76.0% fibo and may continue falling towards the lows at 1.1027. After breaking the low, the price may continue trading towards the post-correctional extension area between 138.2% and 161.8% fibo at 1.0942 and 1.0889 respectively. Another scenario implies that the pair may start a new rising wave without breaking the low. In this case, the ascending correction may continue towards 38.2% and 50.0% fibo at 1.1327 and 1.1422 respectively.
https://www.roboforex.com/uploads/ro...0/EURUSDH4.png
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Forex Fundamental Analysis & Forecast by RoboForex
The Euro couldn’t keep momentum. Overview for 21.08.2019
EURUSD was moving upwards last night influenced the Italian news, but couldn’t continue the momentum.
EURUSD is under slight pressure on Wednesday morning. The current quote for the instrument is 1.1094.
The Italian Prime Minister Giuseppe Conte resigned from his position and the country’s President accepted his resignation. The reason is internal political turmoil that split the governing coalition consisted of two parties, “Five Star Movement” and “Northern League” (Italian “Movimento 5 Stelle” and “Lega Nord” respectively). Conte shifted the responsibility for this onto Matteo Salvini, the Deputy Prime Minister of Italy and the Secretary of Lega Nord.
It appears that the parliament will be dissolved and the President will call new elections.
For Italy, it’s an opportunity to erect a new government, which will try to solve the budget issue. The European Union warned Rome on several occasions about the consequences of the budget deficit the country had. They might be fines from the EU, at least, or suspend the country from the alliance, at most. The first scenario is quite neutral for the European currency, while the second one is extremely negative.
Market players’ attention is still focused on the Jackson Hole Symposium this Friday, where they expected a speech from the FOMC Chairman Jerome Powell.
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