Technical Overview: Our first target which we predicted in the yesterday's analysis has been hit. EUR/USD is expected to trade above the key support at 1.1570. The upward momentum is further reinforced by both rising 20-period and 50-period moving averages. To sum up, as long as 1.1570 holds on the downside, look for a rebound to 1.1675. A break above this level would trigger another buy off to 1.1700.
Fundamental Overview: The euro is rebounding today after a big fall the day before on the back of political uncertainties in Italy, helped by a shrinking spread between the Italian and German government bonds, as well as the reports that Italy's Five Star movement leader Luigi Di Maio said he never sought an exit from the euro area. EUR/USD is up by 0.3% at 1.1576.
Chart Explanation: The black line shows the pivot point. Currently, the price is above the pivot point which is a signal for long positions. If it remains below the pivot point, it will indicate short positions. The red lines show the support levels, while the green line indicates the resistance levels. These levels can be used to enter and exit trades.
Resistance levels: 1.1675, 1.1700, and 1.1750
Support levels: 1.1550, 1.1515, and 1.1460
