The euro in forex trading on Tuesday continued to fall, reaching a 10-month low. The reasons for the weakening currency of the Old World political crisis in Italy, and continued strengthening of the American. The appointment of early parliamentary elections in Italy has led to a significant increase in yields on government securities of Italy. The yield on 2-year bonds exceeded the mark of 2% for the first time since 2014, reflecting investor concern in connection with the developing political events. As a result of the election right parties can strengthen their position and raise the question of withdrawal of Italy from the euro zone to a referendum. Downward pressure on the euro also has a looming crisis in Spain, where the question of no confidence to Prime Minister Rahoyu in connection with a corruption scandal.
According to technical analysis the EUR / USD approached the 1.1500 level, where followed rollback to the level of 1.1540, Ged, the euro dollar is consolidating. Break of the level would lead the pair euro dollar to reduce the mark 1.1450, then - 1.1380. An alternative is to fix quotations EUR / USD above 1.1640, which is likely to result in EUR / USD pair to corrective gains in the area of 1.1730. According to the indicators, the EUR / USD is oversold, which increases the chances of upward correction.
Forex Forecast EUR / USD Company WELTRADE