The Euro Outlook
The major resistance for the Euro stands at the 14548 and 14577 levels. The Weekly Bullish Reversals are at 13913 and 14450. The Monthly Bullish Reversal stands at 14700. The weekly oscillators are still positive and technically that is the top of the channel area.
Friday’s closing at 13523 leave some room to the next Daily Bullish at 13595. The next key area of resistance will be 13846. That is what we need a daily closing above to suggest we will test the 14500 area.
German Elections – 301 Seats?
Merkel’s conservatives appear to have won 301 seats in the 598-seat parliament, which is very a thin majority. This eliminated the need for a coalition partner, according to ARD TV projection MIXING results with exit polls. This is not final. A drop to 297 seats compared to 301 for the three left parties, the SPD, Greens and Left could be a problem since the SPD and Greens have said they won’t do a coalition with the Left. The conservative victory may not yet be a full home-run.
Merkel Wins
- Merkel addressed her supporters: “Dear friends, your cheers show that we’ve all got something to celebrate about. That’s a super result. First of all, I’d like to thank the voters who put such overwhelming faith in our conservative parties.And I’d like to promise the voters that we will act responsibly and with great care.Thank you very much.”
- The conservatives appear on track for an absolute majority in Parliament after German election or at least they have the biggest win in decades. However, it remains unclear what kind of coalition is necessary.