Fundamental Review
The Greenback knocked down the Euro to the lowest level after 17 months
The tensions about the Italian budget after got rejected by the EU commission last week has made the Greenback knocked the Euro to its lowest level in 17 months. Italy has until this Tuesday to resubmit a fiscal plan that complies with EU rules, the failure to do so, Italy might face economic sanctions and it would be a bad news for the Euro and it may dive even deeper, as neither Brussels nor Rome appears ready to compromise on their respective demands and incoming economic reports are not likely to be helpful for the Euro. As the calendar now turns into the middle of November, it seems likely that the catalysts that have guided the Euro lower in recent weeks will remain in place. At the same time, the Federal was giving a hint at a pause in its tightening monetary policy and the uncertainty about the US midterms has passed and the market remains confident in US Dollar despite political parties splitting house and senate. Starting with a release of CPI data on Wednesday and Retail Sales on Thursday, this week is going to be an excitement and important week for US Dollar. The speeches from the Chair of the Federal might give impact to the movement of the Greenback too.
Technical Review
The critical point has been broken, 1.13 handle and there is a chance for EURUSD to look for another support level which is 1.1200. By looking to the Daily chart, it is clearly to see the chart pattern so called Head and Shoulder (H&S) formed and it indicates a Strong Bearish Movement if the neckline is broken. Based on the fundamental review, the Euro will be pressured due to the possibility of Italy's economic's sanctions that might bring this pair further down.
The Greenback knocked down the Euro to the lowest level after 17 months
The tensions about the Italian budget after got rejected by the EU commission last week has made the Greenback knocked the Euro to its lowest level in 17 months. Italy has until this Tuesday to resubmit a fiscal plan that complies with EU rules, the failure to do so, Italy might face economic sanctions and it would be a bad news for the Euro and it may dive even deeper, as neither Brussels nor Rome appears ready to compromise on their respective demands and incoming economic reports are not likely to be helpful for the Euro. As the calendar now turns into the middle of November, it seems likely that the catalysts that have guided the Euro lower in recent weeks will remain in place. At the same time, the Federal was giving a hint at a pause in its tightening monetary policy and the uncertainty about the US midterms has passed and the market remains confident in US Dollar despite political parties splitting house and senate. Starting with a release of CPI data on Wednesday and Retail Sales on Thursday, this week is going to be an excitement and important week for US Dollar. The speeches from the Chair of the Federal might give impact to the movement of the Greenback too.
Technical Review
The critical point has been broken, 1.13 handle and there is a chance for EURUSD to look for another support level which is 1.1200. By looking to the Daily chart, it is clearly to see the chart pattern so called Head and Shoulder (H&S) formed and it indicates a Strong Bearish Movement if the neckline is broken. Based on the fundamental review, the Euro will be pressured due to the possibility of Italy's economic's sanctions that might bring this pair further down.