EUR/USD continues to trade under pressure on Tuesday, as the bond market, which saw the Italian/German 10-year yield spread widen back around 490bps yesterday, is the main reason behind the bearish sentiment.
Mario Monti, Italy’s premier-in- waiting is expected to name his government by Wednesday but faces political resistance on forming a Cabinet as Italian yields have surged amid concern he’ll struggle to ease Europe’s sovereign-debt crisis. “My commitment is aimed at making sure that politics can transform this difficult moment in a real opportunity for the nation,” Monti stated at a news conference in Rome yesterday.
Last quoted at 1.3605, EUR/USD has bounced slightly from intraday support at 1.3595, down from an earlier high of 1.3640. If the bear pressure continues during the European session, I finds support levels at 1.3550 and 1.3520. To the upside, resistance levels lie at 1.3655, 1.3690 and 1.3720.
Mario Monti, Italy’s premier-in- waiting is expected to name his government by Wednesday but faces political resistance on forming a Cabinet as Italian yields have surged amid concern he’ll struggle to ease Europe’s sovereign-debt crisis. “My commitment is aimed at making sure that politics can transform this difficult moment in a real opportunity for the nation,” Monti stated at a news conference in Rome yesterday.
Last quoted at 1.3605, EUR/USD has bounced slightly from intraday support at 1.3595, down from an earlier high of 1.3640. If the bear pressure continues during the European session, I finds support levels at 1.3550 and 1.3520. To the upside, resistance levels lie at 1.3655, 1.3690 and 1.3720.
By
M.Zohaib Gadit
Forex Trading Consultant
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