During a few last days, there has been a strong progression down in the EURUSD pair and so it gave a nice opportunity for «bears» players to gain profit. In this article, we’ve considered three main reasons why the future decline in this pair is possible.
EURUSD attempted to grow yesterday but then again slipped to the lower boundary of the current range. The pair has three main reasons to continue the decline:
- We might say goodbye to Therese May not later than in May. Yesterday the euro actively reacted to the movement of the pound due to the news on the topic of Brexit. British Prime Minister T. May made it clear that she is open to the second referendum and even to abandon the idea of leaving the EU. Nevertheless, her “new offer” again failed to convince anyone. GBPUSD fell sharply to 4-month lows and EURUSD returned to its usual range.
Now what? According to recent reports, more and more members of the Conservative Party are calling on May to resign. The main contender of the post of prime minister is Boris Johnson, who takes a much more aggressive stance on the Brexit issue.
There is no secret that if the pound continues to fall the pair EURUSD may also suffer. But it gives a lot of possibilities both for manual traders and for those who use automated trading systems. The downward movement makes the daily trading pretty simple and gives opportunities for EA’s to operate bigger amounts of money and apparently to gain more profit.
- Trade wars: not only Huawei. The United States continues to raise the escalation of the trade conflict with China, now talking about the possible blacklisting of Chinese companies involved in the production of the video surveillance systems. This further worsened the mood of the players and increased the demand for the dollar as a traditional refuge.
- EU elections. Elections to the Europen Parliament will start tomorrow. Euroskeptics parties have significantly increased their chances of winning especially in Italy and France. Also, German Chancellor A. Merkel, who embodies the bastion of the political mainstream, can resign. Concern about the results of the elections puts pressure on the euro and it is possible that the markets have not yet priced up all the scenarios.
Considering all the factors mentioned it gets clear that the dynamic of the pair can be changed with great difficulty which means it's perfect time for EA’s to make a profit. With our store, everyone will find the best forex robots for most pairs in the market. We have a wide selection of robots for trading on EUR/USD pair.