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EUR/USD has been changing hands under 1.21, as investors follow Italy’s ongoing political crisis. According to Terence Wu, FX Strategist at OCBC Bank, the next target is at 1.2050, before 1.2000.

Key quotes

“The sharp breach of the 1.2130/50 zone to the downside leaves the EUR/USD bearish on the technical perspective.”

“Expect the EUR to be under pressure in the immediate horizon, especially as political uncertainty seems to have spread from Italy to the Netherlands.”

“1.2050 may be the next target, before 1.2000.”

“A bounce clear of 1.2200 may be needed to negate the downtrend.”