The Euro continues in its downward trajectory amid Italy budget concerns and a strengthening U.S Dollar driven by a continuous increase in U.S Treasury yields. Investors keep their distance from the Common currency as they worry about a deeper argument between the EU and Italy given that Italy continues to insist on its proposed budget plan that does not satisfy the European Commission. Furthermore, the Common currency faces pressure from the strengthening U.S Dollar as investors price in a continuation in the path of U.S rate hikes.
The Euro breaks below the 1.14922 - 1.15458 range signaling a return of bearish bets versus the European currency. Investors can clearly see from the chart below that the trend is bearish and prices are continuously trending below the 13-period moving average. The break below the 1.14922 level exposes the next support level at 1.14326 which happens to coincide with the 1.27 Fibonacci extension.
Support: 1.14922 1.14326
Resistance: 1.15458 1.16255