The euro currency is holding firm above the 1.1070 level against the US dollar as the pairs current yearly trading low remains intact.
21 August 2019, OctaFX – The euro was relatively unchanged as the crisis in Italy continued. Yesterday, the country’s prime minister, Giuseppe Conte resigned from office after months of government squabbling. He resigned after accusing Matteo Salvini of weakening the country by calling an election. Salvini is the populist leader of the League party and the interior minister.
The resignation means that the League Party will need to find another coalition party to avoid a snap election. These political issues are coming at a time when the EU economy is going through a down-turn. Just this week, the German central bank warned that the country will likely slip into a recession. In the UK, the future is at risk as the country continues to battle the European Union.
EURUSD technical analysis
Bearish fundamental news has failed to push the EURUSD pair lower, which may encourage bulls to test towards the current weekly high. Overall, the release of the FOMC Meeting Minutes should be the next directional catalyst for the EURUSD pair.
The EURUSD pair is bearish while trading below the 1.1100 level, key support is found at the 1.1070 and 1.1050 levels.
If the EURUSD pair trades above the 1.1100 level, bulls may test towards the 1.1110 and 1.1130 levels.
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