EURUSD will fall due to elections in Germany.
Last minute engraving forecasts 25.09.2017
The main event of this Monday morning: the results of the elections in Germany — the elections seriously weakened Merkel, this will put pressure on the euro.
Merkel’s Party (CDU) won the first place (33%), but this is the worst result in nearly 70 years, elections, 9% loss compared to previous elections. The second concern — the AfD has obtained the third place with 12% («Alternative for Germany») — a radical right-wing, semi-fascist, many call them the heirs to Hitler’s party, the NSDAP.
But the main concern for Merkel is the Socialist party (SPD), the second-largest (20% of the vote) — which has pulled out of Merkel’s coalition and in the opposition.
Therefore, the only option for Merkel to form a majority in parliament — and get the job of Chancellor — head of government — in order to create a coalition with two small parties — the Free Democrats and the Greens — 11% and 9% of the vote. This makes Merkel and her government are in a very vulnerable and objectively low.
The weakening of the Germany of the national authorities which is inevitably to the weakening of the EU as a whole.
This weakens the EURUSD.
We sell the euro from 1.1940 — and are willing to sell for a breakthrough down from 1.1860.
The level of the cancellation of the sale: 1.2005 — the breakthrough of 1.2005 and then we buy.