As the currency pair did not have any fundamental background that could justify a rapid move, it finished the week near the 55-hour SMA. However, in early hours of the new trading session it broke though combined support set up by the 38.2% Fibonacci retracement level and the weekly PP and approached the bottom boundary of a three-week long ascending channel. The reason for such sudden fall was based on news about Merkel’s failure to form a three-party coalition. Nevertheless, such weakening of the Euro is expected to have limited effect, as the above lower support line is additionally secured by the 200-hour SMA and the monthly PP located at the psychological 1.1700 level.
