EUR/USD under pressure on Catalan election results

Catalan election weighs on the Euro
Germany and US data up next
Technicals remain bullish

Ivan Delgado Independent Analyst

EUR/USD has come under increasing pressure in the last hour of trading, currently exchanging hands at 1.1835, having reached a low of 1.1815 after Catalan separatists won a majority in Spanish regional election.

Catalan separatists pose political risk

The risk of further political turmoil between the Spanish and the Catalan governments, coupled with worries over a minority government in Germany, are the main drivers pushing the European shared currency into fresh session lows, as thin pre-holiday trading begins.

German and US data eyed

Looking ahead, as Valeria Bednarik, Chief Analyst at FXStreet, writes: "This Friday, attention will focus on German GFK Consumer Confidence survey for January, while the US will release personal income and spending figures for November, which include Fed's favorite inflation measure, the PCE price index, alongside with Durable Goods Orders, New Home Sales and the Michigan sentiment index. Currencies, however, may see limited reactions ahead of the year-end holidays."

EUR/USD technicals

Technically, as Valeria notes: "In the 4 hours chart, the price holds above a bullish 20 SMA that extended its advance above the 100 and 200 SMAs, while technical indicators continue consolidating within positive territory, aiming to regain the upside but below previous weekly highs, all of which leans the scale towards the upside, although a break above 1.1900 is now required to confirm additional gains ahead."

Author

Ivan Delgado

Independent Analyst

Established in the Asian continent since 2009, Ivan studied a degree in Business at the University Pompeu Fabra (Barcelona), while also earning a postgraduate degree in Business Administration.

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