27, February 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

Most recently, polls were saying that Euro bullish candidates are close to the victory. But now the situation has changed in favor of the bearish candidates who took the lead.

Euro continued its falling and tested the minimum 1.3076.

Center-left, the candidate P. Luigi Bersani was close to win the most votes in the Italian parliament, but the Centre-right and former Italian Prime Minister Silvio Berlusconi is raging in the election. How can this impact the market?

The euro had a tendency to grow at the beginning of the week. The pai rose up to 1.3300 on news that P. Luigi Bersani, and Mario Monti had a good position, anticipating that his party will have a majority in the house of parliament.

Although this news after its release in the morning and was repeated until the opening of the U.S. session, the euro was unable to hold on 1.3300.

Just by looking at the chart, we see the pair fell from the top to the intraday low. Silvio Berlusconi wins the election, which is likely to lead to the separation of the lower house of parliament.

Closing the euro below 1.3100 plus unpromising news from Italy, can provoke deeper falling.