“¢ The latest positive political development in Italy fails to impress the bulls.
“¢ Renewed USD buying interest adds to the already weaker sentiment.
The EUR/USD pair held on to its weaker tone through the early NA session and is currently trading around the 1.1770 region, just a few pips away from yearly lows touched on Wednesday.
The pair once again struggled to build on its early recovery attempt back above the 1.1800 handle and failed to benefit from the latest positive political development in Italy, wherein 5-Star and League leaders reached a final agreement on government programme.
The development provided a relief from the impending political deadlock in one of the Euro-zone’s larger economies but did little to ease the prevailing bearish sentiment surrounding the shared currency.
Meanwhile, some renewed US Dollar buying interest since the early European session, despite a modest retracement in the US Treasury bond yields exerted some additional downward pressure on the major.
In absence of any major market moving economic releases, the Fed Governor Lael Brainard’s scheduled speech during the NA session might influence the price-action and help traders grab some short-term opportunities on the last trading day of the week.
Technical levels to watch
A follow-through selling pressure has the potential to continue dragging the pair further towards 1.1735 intermediate support en-route the 1.1700 round figure mark. On the upside, any recovery attempts back above the 1.1800 handle might continue to confront some fresh supply near the 1.1820 region, which if cleared might lift the pair further towards mid-1.1800s.
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