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Aug 12 - 02:36 PM
EUR/USD - COMMENT-EUR/USD Shorts Flummoxed By Resilience To Italy Uncertainty
First appeared on eFXplus on Aug 12 - 11:20 AM

EUR/USD shorts may be wondering what it will take to bring down the euro after its resilience to mounting risks , including renewed political uncertainty in Italy. Despite the risks, EUR/USD is still just consolidating recent short-term gains, with declining global risk appetite contributing to its buoyancy.
Sharp sell-offs in equities and emerging market currencies as well as intensifying Hong Kong protests and shocking Argentine election results have led some investors to unwind riskier investments for safer havens such as the euro.
Ongoing U.S.-Sino trade tensions also help underpin EUR/USD as China's yuan continues to hold near recent lows against the greenback and euro.
EUR/USD's slide toward the 10-DMA and 1.1160 support was rejected today, suggesting bulls will not go down without a fight.
The long upper and lower wicks on recent daily candles could indicate EUR/USD will range trade in the 1.1150-1.1250 region until a much larger catalyst emerges which leads to a breakout. Meanwhile, EUR/USD bulls are heartened by the fact that the possibility of Italian elections possibility had minimal impact after Salvini said leaving the euro was not an option nL8N2560C9.
Fitch ratings helped by maintaining Italy's BBB rating nL4N25550A.

chart: Click here

Source:
Refinitiv IFR Research/Market Commentary

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