EURUSD ebbed to a six-day low of 1.1713, establishing a downward bias after whipsawing yesterday as markets digested the shifting political landscape in Germany. New elections are looking the most likely outcome following the collapse of negotiations to form a coalition government. Mrs Merkel is reported to have this preference, but her right hand man earlier said there is a window of opportunity for a stable coalition to be established. EURCHF is my preferred pair in this situation and the H4 chart triggered and entry at 1.6320 on completion of the 16:00 time frame. Target 1 is the lower Bollinger band at 1.1589 and target 2 1.1548. A reverse over 1.1700 would negate this move. RSI is 42 and falling and the Bollinger bands are widening and descending, but the Parabolic SAR remains positive.
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Senior Market Analyst
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