Italy re-election, a referendum on Euro. The EUR could extend the decline if Italy-German yield spread widens to fresh multi-year highs. The EUR is oversold as per the 14-day relative strength index. The EUR/USD pair fell to 1.1607 on Monday – the lowest level since November 2017 as the Italy-German yield spread rose to a 5.5-year high of 232 basis points. Investors ditched Italian bonds, pushing the benchmark 10-year yield higher by a hefty 22 basis points on fears that fresh election would deliver a stronger mandate to Italy’s eurosceptic parties. The country’s would-be eurosceptic coalition government collapsed at the weekend, according to Reuters news and the fresh election is widely seen as a vote on EU membership. The common currency may continue to lose altitude today if the Italian-German yield spread rises further in the EUR-negative manner. The moving averages (MAs) maintain the bearish stance – 5-day, 10-day, and 21-day MAs are sloping downwards. However, the relative strength index (RSI) shows oversold conditions. So, a corrective rally could be seen, if the oversold RSI is backed by narrowing of Italy-German bond yield spread. EUR/USD Technical Levels FXStreet Chief Analyst Valeria Bednarik mentions 1.1605, 1.1580, and 1.1550 as key support levels. Meanwhile, resistance is seen at 1.1645, 1.1685, and 1.1720. FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next GBP/USD can’t seem to shed the 1.33 handle as UK markets return from their long weekend FX Street 5 years Italy re-election, a referendum on Euro. The EUR could extend the decline if Italy-German yield spread widens to fresh multi-year highs. The EUR is oversold as per the 14-day relative strength index. The EUR/USD pair fell to 1.1607 on Monday - the lowest level since November 2017 as the Italy-German yield spread rose to a 5.5-year high of 232 basis points. Investors ditched Italian bonds, pushing the benchmark 10-year yield higher by a hefty 22 basis points on fears that fresh election would deliver a stronger mandate to Italy's eurosceptic parties. The country's would-be eurosceptic coalition government collapsed at the… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
