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25 Feb 2013
Forex: EUR/USD awaits Italian election polls, capped by 1.3316
The EUR/USD upside extended above the 1.3300 mark, coming to as high as 1.3316 before easing back to just below the psychological level. US Chicago Fed national activity index is already out, down from 0.25 (revised from 0.02) to -0.32 in January, but investors are more focused on the Italian elections. The voting process is closed and now is time for first polls.
“A Berlusconi victory in both chambers – the chamber of deputies and in the Senate – would constitute the worst case scenario for the euro, which we only consider to be marginally likely though”, wrote Commerzbank analyst Carolin Hecht. The most likely scenario and greatest relief in the EUR/USD would be an alliance between the centre-left Pierluigi Bersani and Mario Monti.
“The intraday bias is positive, as the pair is heading for a test of 1.3305 resistance area. A break through the latter will set the focus on 1.3430 high”, wrote Deltastock.com analyst Stoyan Mihaylov, pointing to key support at 1.3180 low.
“A Berlusconi victory in both chambers – the chamber of deputies and in the Senate – would constitute the worst case scenario for the euro, which we only consider to be marginally likely though”, wrote Commerzbank analyst Carolin Hecht. The most likely scenario and greatest relief in the EUR/USD would be an alliance between the centre-left Pierluigi Bersani and Mario Monti.
“The intraday bias is positive, as the pair is heading for a test of 1.3305 resistance area. A break through the latter will set the focus on 1.3430 high”, wrote Deltastock.com analyst Stoyan Mihaylov, pointing to key support at 1.3180 low.