EUR/USD: Recovery from Italy No vote-led lows stalled near 1.0600
|The shared currency remains relentlessly sold-off in the Asian session, now pushing EUR/USD back towards fresh twenty-one month lows struck earlier at 1.0507.
EUR/USD faces rejection just below 1.06 handle
Currently, EUR/USD drops -1.10% to 1.0546, aiming for a test of March 2015 lows reached sub-1.05 levels. The main currency pair slump sharply to fresh almost two-year troughs after the Italian vote No in Sunday’s constitutional amendment referendum, following which PM Renzi accepted his defeat and announced his intent to resign.
However, the bears loosened grip thereon as risk sentiment recovered somewhat, prompting a brief recovery in EUR/USD towards 1.06 handle, only meet fresh offers just below the last, knocking-off the rate back below the mid-point of 1.05 handle.
Markets continue to digest the Italian referendum-related news and await reaction from the European traders, as we progress towards early European trading shortly. While on the data-front, we have a raft of services PMI reports from the Euro area economies, followed by Sentix investor confidence and retail sales data from the Euroland.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance 1.0605/07 (10 & 5-DMA). A break beyond the last, doors will open for a test of 1.0643 (daily S1) and from there to 1.0685/90 (Nov 28 high/ 11-day high). On the flip side, the immediate support is placed at 1.0507 (multi-month low) below which 1.0456 (March 2015 low) and 1.0400 (zero figure) could be tested.
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