Against the backdrop of the well-received Italian auction of 5-year and 10-year bonds, although at higher borrowing costs, Currency Analyst Christopher Vecchio at DailyFX commented, “while it's clear that sovereign credit risk is rising again this week so far, what's less clear is what happens to the split Italian government… Based on my own opinion, I believe there's a growing consensus that new elections will have to take place at some point in the next few months”.
As of writing EUR/USD is up 0.33% at 1.3101
Next resistance levels line up at 1.3133 (high Feb.27) followed by 1.3200 (psychological level) and 1.3319 (high Feb.25).
On the flip side, a breakdown of 1.3042 (low Feb.27) would bring 1.3032 (daily cloud base) and finally 1.3019 (low Feb.26).
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