The Euro: Italy is a major risk factor

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After falling to the lows of late June at 1.1530 during yesterday’s trading, EURUSD has found good support and recovered her balance, reacting to the loss. Traders caught at the approach of quotations to a mark 1.15, which is the key for the bears. The loss of this level would seriously worsen the technical picture for the Euro and will open the way to 1.13.
The tone in the main currency pair continues to set the General mood of the players on the dollar. Markets recovered after the next escalation of the trade conflict between Beijing and Washington, and interest for risk returned. The improvement in investor sentiment has hit the dollar, which is actively growing during times of strained Sino-American relations.
Interesting statistics are not announced until Friday, so, in the coming days the pair will continue to focus on market sentiment and the overall dynamics of the dollar. For the most common currency risk factor is Italy, which discussed the increase in public spending and, consequently, the expansion of the budget deficit.
From a technical point of view, EURUSD remains subject to downside risks, while trading below $ 1.16,confident breakthrough which will improve the short-term Outlook for the pair and will pave the way to more respectable levels in the 1.1660 area, where the 20-day moving average. For development of pulse recovery quotes need a daily close above the 1.16 region.
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Michael Mashchenko,
Analyst social network for investors
eToro in Russia and the CIS