EURUSD escalating tensions between the EU and Italy
EURUSD Technical Overview:
Pivot: 1.1487
Key Resistance: 1.1487 - 1.1522 - 1.1540 - 1.1558
Key Support: 1.1460 - 1.1435 - 1.1412 - 1.1396
Day Trading Range: 1.1420 - 1.1535
Technical Indicator:
RSI: The RSI shows mixed bearish trend ahead.
Moving Average: SMA 100 (1.1506) & SMA 50 (1.1499) both are strong resistance for EURUSD today.
Technical Trade Idea:
Most Likely Scenario: long positions above 1.1487 with targets at 1.1512 & 1.1536 in extension.
Alternative scenario: below 1.1487 look for further downside with 1.1458 & 1.1434 as targets.
Fundamental:
Italian Risk Continue:
“Italian Deputy PM Salvini yesterday met with far-right former French presidential candidate Marie Le Pen, where the two publicly agreed that ‘dancing-man’ Juncker is the “real enemy” of Europe: perhaps that’s why the guy was shuffling from side to side in public, to make himself a harder target for populists?”
“With the Italian bond and stock market making its own negative judgement on the Italian desire not to have to embrace Teutonic hair-shirt fiscal policy in a febrile socio-economic environment, Salvini added “If one had evil thoughts, he would think there are people betting on the spread [of Italian over German government bond yields] because they don’t want Italy to grow and create jobs.” And there was also little sign of any retreat or surrender to the bond market or the European Commission: “We will not backtrack, we will not backtrack,” Salvini insisted, adding that “Speculators acting like Soros are betting on Italy’s collapse to buy at discount prices the healthy companies, and there are many of them, that have remained in this country.”
The EURUSD closes yesterday on bearish note yesterday owning to high level of dovish pressure on common currency influenced by escalating tensions between the EU and Italy, over the budget approved a couple of weeks ago. European equities collapsed to multi-month lows on Monday, with banking-related equities leading the slump, as Italian government bond yields surged to over 4-year highs, with Italian Salvini pointing a finger on Brussels for the bonds’ sell-off and Deputy PM Di Maio claiming that anti-austerity views will grow stronger across the continent, meanwhile the pair hit a new 6-week low at 1.1459 during yesterday’s market hours. The EUR/USD is trading flat and steady in early Tuesday action just shy of the 1.15 handle as the pair holds close to near-term lows.
Italy headlines remain a drag on the EUR, with Italian bonds continuing to under perform against their major benchmark peers as political confidence crumbles, and the downside pull of the Italian government’s budget concerns is poorly timed, with broader markets already suffering a lack of confidence at the hands of rising US Treasury bond yields and increasing discomfort surrounding global trade, and this week could see the EUR/USD take a further haircut.
Thanks
YoCryptoManic
Pivot: 1.1487
Key Resistance: 1.1487 - 1.1522 - 1.1540 - 1.1558
Key Support: 1.1460 - 1.1435 - 1.1412 - 1.1396
Day Trading Range: 1.1420 - 1.1535
Technical Indicator:
RSI: The RSI shows mixed bearish trend ahead.
Moving Average: SMA 100 (1.1506) & SMA 50 (1.1499) both are strong resistance for EURUSD today.
Technical Trade Idea:
Most Likely Scenario: long positions above 1.1487 with targets at 1.1512 & 1.1536 in extension.
Alternative scenario: below 1.1487 look for further downside with 1.1458 & 1.1434 as targets.
Fundamental:
Italian Risk Continue:
“Italian Deputy PM Salvini yesterday met with far-right former French presidential candidate Marie Le Pen, where the two publicly agreed that ‘dancing-man’ Juncker is the “real enemy” of Europe: perhaps that’s why the guy was shuffling from side to side in public, to make himself a harder target for populists?”
“With the Italian bond and stock market making its own negative judgement on the Italian desire not to have to embrace Teutonic hair-shirt fiscal policy in a febrile socio-economic environment, Salvini added “If one had evil thoughts, he would think there are people betting on the spread [of Italian over German government bond yields] because they don’t want Italy to grow and create jobs.” And there was also little sign of any retreat or surrender to the bond market or the European Commission: “We will not backtrack, we will not backtrack,” Salvini insisted, adding that “Speculators acting like Soros are betting on Italy’s collapse to buy at discount prices the healthy companies, and there are many of them, that have remained in this country.”
The EURUSD closes yesterday on bearish note yesterday owning to high level of dovish pressure on common currency influenced by escalating tensions between the EU and Italy, over the budget approved a couple of weeks ago. European equities collapsed to multi-month lows on Monday, with banking-related equities leading the slump, as Italian government bond yields surged to over 4-year highs, with Italian Salvini pointing a finger on Brussels for the bonds’ sell-off and Deputy PM Di Maio claiming that anti-austerity views will grow stronger across the continent, meanwhile the pair hit a new 6-week low at 1.1459 during yesterday’s market hours. The EUR/USD is trading flat and steady in early Tuesday action just shy of the 1.15 handle as the pair holds close to near-term lows.
Italy headlines remain a drag on the EUR, with Italian bonds continuing to under perform against their major benchmark peers as political confidence crumbles, and the downside pull of the Italian government’s budget concerns is poorly timed, with broader markets already suffering a lack of confidence at the hands of rising US Treasury bond yields and increasing discomfort surrounding global trade, and this week could see the EUR/USD take a further haircut.
Thanks
YoCryptoManic
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