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  • General elections at Spain showed that the ruling socialist party got higher votes than the others but it still needs support to command the parliament.
  • Second-tier data from the Euro-zone and the US can provide fresh impulse.

The EUR/USD pair is taking the rounds near 1.1150 during early Monday. The quote stretched its short-covering overnight after Spain’s general election results showed the ruling PM Pedro Sanchez to remain in power.

Sanchez’s socialist party PSOE (Partido Socialista Obrero Español) got nearly seven million votes during Sunday’s general elections of Spain. The ruling party got 123 seats but it still needs to take the support of Podemos in order to form 165 seat alliances in the parliament to extend their ruling years.

With the ruling party managed to hold the reins of the Spanish economy, absence of political uncertainty could favor the Euro (EUR) to register some early-week gains when the European markets open.

However, April month Euro-zone business climate and the US personal spending details for February and March will be the key to follow.

The Eurozone business climate may weaken to 0.50 from 0.53 while the US personal spending grew +0.1% in January.

Technical Analysis

Unless clearing a downward sloping support-line ranging from mid-November 2018, at 1.1160 now, chances of the EUR/USD pair’s pullback to 1.1140 and 1.1110 supports can’t be denied while 1.1080 may challenge bears then after.

Alternatively, an upside clearance of 1.1160 enables the quote aim for 1.1180 and 1.1210 ahead of targeting 1.1265 and 50-day simple moving average (SMA) level of .1280.