The EUR /USD pair declined on Friday as British elections failed to deliver a clear majority for Prime Minister Theresa May, dragging euro lower and helping lift the dollar index. The election has left the United Kingdom…
The EUR /USD pair declined on Friday as British elections failed to deliver a clear majority for Prime Minister Theresa May, dragging euro lower and helping lift the dollar index.
The election has left the United Kingdom with a hung parliament as the ruling Conservative Party lost its majority while still emerging as the largest party, in a result that has cast doubt over Prime Minister Theresa May's leadership and over the course of Brexit talks due to start in just 10 days.
The euro extended overnight losses and was 0.3 percent lower at $1.1181, off a seven-month high of $1.1285 touched a week ago on improved growth prospects in Europe and a broadly weaker dollar.
The ongoing weakness is set to continue for this pair as the resistance level at 1.1239 is likely to act as strong barrier to the bulls and bring a further decline towards lower levels.
To the upside, the immediate resistance can be seen at 1.1189, a break above this level would expose the pair to next resistance level at 1.1239.
To the downside, immediate support can be seen at 1.1140, a break below at this level will open the door towards next level at 1.1107.
