EUR/USD - EUR/USD Printed Fresh 20-Month Low - 12/05/2016 (GMT)

Euro touches a 20-month low against the U.S. dollar during Italian Prime Minister Matteo Renzi after resigned in the early hours of Monday after losing a referendum he called to push through constitutional changes. The EUR/USD pair recorded a fresh low at 1.0505 taking out the previous 1.0517 low in November.

Although the common currency created a pullback and is trading near the 1.0560 price level. A move back to 1.0500 would not surprise, below which could see a sell-off until the 1.0460 support barrier, March 2015 low, but under there, there is not significant support until it reaches the psychological 1.0200 level. On the other hand, a break above the 1.0690 resistance level will open the way for an upside potential move until the 1.0850 obstacle which overlaps with the 50-daily SMA. On the daily chart, technical indicators seem to be in agreement with a bearish scenario as both are still following a negative path. The RSI indicator is approaching the 30 level while the MACD indicator is moving with some weak momentum below the zero line and above its trigger line.