EUR/USD recap for 18.05.2018
And so the week ended for the Euro in negative territory as downside pressure from the uncertain political situation in Italy remained on the focus, even though they are on the way of forming a government. Price opened at 1.17935 for the new day and made an attempt to test the local resistance at 1.18223, making a high at 1.18216. Not so long after that as progressing in to the European session on later on in the US opening the price went again under pressure as the pair reached a low of 1.17494 to make a close at 1.17699. With this the price ended lower for a 4th consecutive day and wrapped it up for this week's action for the Euro.
Still the concern of a coalition between the League and 5-Star remains on the table and will be main driver for the short - term until the situation is resolved in a secure and favorable way. 10 - year BTP's yields moved sharply higher as the idea of lower taxes and increases in public spending is a recipe for potentially a deteriorating budget. Euro nearing swing lows from November and December, so trade with caution. Mindful short positions will be a good choice of taking an advantage over the uncertain period. Dollar remained strong across the board and this week also it has fight its way up.
Next week starts slower in fundamentals, but for sure we will some action again as political drama is still in the spotlight.