Will the EUR regain some of its losses it incurred since APR 17

EURUSD


The EUR faced a strong selloff since its break of a steep upward trendline last April when it broke below the 1.23 area.

This slide continued aided with grim news of a Turkish Lira downward spiral which was ignited by a spat between the US and Turkey over a detained angelic pastor (Mr. Brunson) who the US demands his release and applying pressure through Tariffs on imported Turkish Steel and Aluminum.

The exposure of European banks to the Lira (Especially from France, Italy and Spain) has got markets dumping the EURO and seek haven in the mounting strength of the USD.

The EUR has hit its target of 1.1490 since the April drop and has been pushing lower still.

But as the Turkish Central Bank scrambles to stabilize the Lira as well as a Promise from the gas-rich state of Qatar of 15 Billion USD to be invested in Turkey helped ease the pressure off the EUR.

It has found some support around the 1.1320 area from where it might try to move north a bit to test the broken trendline resting at 1.1570, this was aided also by the EU reporting inflation of 2.1% which is higher than its target of 2% which has investors predicting a hawkish policy from the EU in the coming period effectively improving the EUR performance.

Failure to break above could effectively leave the EUR sliding to the south again leading for more pains for the EU.