Italian Politics and USD Bid: 21 May EURUSD Impact Analysis


Luigi Di Maio, the leader of the anti-establishment Five Star Movement, and Matteo Salvini, the head of the far-right League, were due to meet the Italian president on Monday to secure his approval for their alliance to govern Italy. How is this move impacting the EURUSD pair? Find out with this 21 May EURUSD Impact Analysis.

21 May, HotForex – EURUSD has settled higher after posting a trend low at 1.1716, which is the lowest level seen since mid December. The subsequently rebound stalled at 1.1745 amid talk of offers at and around the 1.1750 mark.

Italian Politics & USD Bid: 21 EURUSD Impact Analysis

Italy remains in the spotlight amid concerns about the policy proposals of the anti-establishment, Eurosceptic coalition government. ECB’s Nowotny said earlier, as Italian 10-year yields spiked a further over 5 bp to near two-year highs, that he hopes that the actual policies will be “much wiser” than the proposals.

The outlook appears bearish given the rising U.S. yield advantage relative to Bunds, coupled with the Italian situation. EURUSD has trend resistance at 1.1780 and the daily Pivot point before that it must breach the mid line Bollinger band at 1.1757. Support at 1.1740 has proved vulnerable today but further down 1.1720-10 support has been more substantial.

Disclaimer

This article was written by Stuart Cowell, Market Analyst at Hotforex. The provided article is a general marketing communication for information purposes only. It does not constitute an independent investment research. Nothing in this communication contains an investment advice or an investment recommendation. It also does not contain a solicitation for the purpose of buying or selling of any financial instrument.

All information provided gathered from reputable sources. Any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. We assume no liability for any loss arising from any investment made based on the information provided in this communication.

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