EUR/USD still weak, in a range below 1.1800

Euro remain under pressure amid political uncertainty in Italy.
EUR/USD recovery was short-lived and is back near monthly lows.

Matías Salord FXStreet

The EUR/USD pair is trading in a range between 1.1765 and 1.1790, modestly lower for the day. The greenback gained momentum across the board near the end of the European session and erased losses. The DXY bounced from 93.15 back to 93.50 as US yields rose modestly.

The euro is also losing ground versus the Swiss franc and the Pound affected by Italian politics. Today tensions eased a bit: Italy’s stock index MIB rose modestly and yields pulled back from monthly highs but the European currency remains under pressure. EUR/CHF dropped to the lowest level in two months. Since the beginning of the month, it has fallen more than 250 pips. The relief came after the coalition between the anti-establishment Five Star Movement and League chose Giuseppe Conte as the candidate for prime minister.

Despite the relief, the EUR/USD remains unable to move away from multi-month lows. Earlier today it reached at 1.1828, the highest level since Thursday but then turned lower. The retreat from the top found support above 1.1765.

EUR/USD Levels to watch

The decline from daily highs signals that EUR/USD is not ready yet for a sustainable recovery. A consolidation below 1.1750 would add bearish pressure exposing May lows at 1.1715.

To the upside, immediate resistance is seen at 1.1790/1.1800, above the next resistance could be located at 1.1825 and then comes 1.1845/50 with a break higher signaling more gains ahead.

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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