EUR/USD opens the week with some retreat from highs
InvestingOnline.com
20/08/2018, 09:05The Euro is stopping a three-day rally from 1.1300 after the pair was capped at 1.1450 on Monday. The EUR/USD is now currently in consolidation mode, but is there a room for more gains?
EUR/USD is currently trading at 1.1415, 0.20% negative on Monday. The EUR/USD is performing its first negative day since August 14. There are no significant events to watch in the economic calendar, but fundamental news can affect the pair.
In Italy, the government has announced they are planning to spend around €80 million on infrastructure after the Genova bridge disaster. However, that move would breach Europea Union budgetary rules.
How can that happen? Italy has been on the brink of financial collapse since the time of Silvio Berlusconi government. However, the European Union has intervened in the country to maintain the stability, or to take the political control, it depends on what perspective you take. So, long story short, Italy doesn’t have savings as the European Union didn’t give them any room to save money.
Now, any big purchase, or significant investment, may cause them to breach the signed budget deals. What to do in the case of emergencies like the Genova bridge?
EUR/USD on the brink
EURUSD daily chart August 20
Back to forex, the EUR/USD is trading at 1.1415 as the pair is retreating from highs. If the cross holds the 1.1400 level, the pair has now a resistance level to watch at 1.1450. Above there, 1.1500 is the next selling zone, then the 1.1550.
To the downside, if the pair extends loses below the 1.1400, investors should watch for the 1.1300 as the most important support to the EUR/USD.
