EUR/USD breaks resistance on favorable Dutch exit polls

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According to exit polls after voting ended at 20:00 GMT, the extreme-right Freedom Party (PVV) led by Geert Wilders will receive only 19 seats in parliament. This is far behind the mainstream Liberal Party (VVD) led by incumbent PM Mark Rutte which is on track to receive 31 seats.

Turnout has been quite strong and real votes will be counted later on, so things may change. Counting will be manual as there were worries about an intervention by the Russians or other forces.

As we explained in the Dutch Elections preview, these elections are seen as an indicator for the wider European politics, namely the French elections. A strong showing for Wilders would have given a boost to France’s Marine Le Pen, another extremist. However, if the exit polls hold, it is a win for the mainstream that could help centrist Emmanuel Macron.

EUR/USD on the up and up

Euro/dollar was already on the rise thanks to the Federal Reserve. The Fed raised rates but basically left everything else unchanged. The Fed may have snuck in a hike on strong stocks but basically kept things cool. Here are 5 reasons why the dollar fell.

EUR/USD advanced above the 1.07 level but got stuck at resistance around 1.0710.

The exit polls send it to a new high at 1.0736. A confirmation of the breakout is awaited, but the euro is catching up with its peers, that gained more against the greenback.

The next line of resistance is 1.0760, followed by 1.0830. Support is at 1.0660.

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Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

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