2013-02-27 06:23 GMT
Europe concerned with Italian election outcome
The post election stalemate in Italy, where no political group secured a clear majority in parliament, is causing concerns among European officials and a stir in the markets. Italian FTSE MIB fell by 4.60% on Tuesday while the yield on the country’s benchmark 10-year bond rose to 4.79%. Throughout the day various European officials have been expressing their concerns with the outcome of the elections. German Foreign Minister Guido Westerwelle stressed the need for a strong government in Italy, which would carry on with the reform plan initiated by Mario Monti. European Commission spokesman Olivier Bailly said that boosting growth and creating jobs should be the most important points on the new government’s agenda.
Spanish Minister of Economy Luis de Guindos said in the European morning that he hopes Italy would continue introducing measures to fight the crisis, while his French counterpart Pierre Moscovici expressed hope that Pier Luigi Bersani would form a government inclined to implement further reforms. Also BoE MPC members, speaking before the UK Treasury Committee, emphasized that a prolonged political instability in Italy might considerably harm the Eurozone economy. -FXstreet.com
2013-02-27 09:30 GMT | United Kingdom. Gross Domestic Product (QoQ) (Q4)
2013-02-27 13:30 GMT | United States. US Durable Goods Orders (Jan)
2013-02-27 15:00 GMT | United States. Fed's Bernanke testifies
2013-02-27 17:30 GMT | E.M.U. ECB President Draghi's Speech
2013-02-27 05:39 GMT | Euro speaks Italian these days, capire?
2013-02-27 05:18 GMT | GBP/USD threatening 1.5100 support
2013-02-27 04:41 GMT | USD/JPY Q2 target at 97 – JPM
2013-02-27 02:58 GMT | Gold higher on Bernanke testimony
MARKET ANALYSIS – Intraday Analysis
Upwards scenario: Instrument consolidates after the initial price cut on the 25-02-2013. Our reference point for the upside penetration locates at 1.3092 (R1). Clearance here is required to enable higher targets at 1.3134 (R2) and 1.3173 (R3). Downwards scenario: Further downside extension is limited now to the important resistance level at 1.3036 (S1). Below here we see potential for the price acceleration towards to next initial targets at 1.2997 (S2) and 1.2957 (S3).
Resistance Levels: 1.3092, 1.3134, 1.3173
Support Levels: 1.3036, 1.2997, 1.2957
Upwards scenario: Corrective action might take a place above the next resistance at 1.5139 (R1). Break here would open route towards to higher target at 1.5180 (R2) and any further price advance would then be limited to 1.5220 (R3). Downwards scenario: Recently instrument tested negative side however it might face next hurdle on the important technical level -1.5072 (S1). Break here is required to open road for the downtrend resuming. Our intraday targets for today are 1.5032 (S2) and 1.4995 (S3).
Resistance Levels: 1.5139, 1.5180, 1.5220
Support Levels: 1.5072, 1.5032, 1.4995
HIGH: 92.261 | LOW: 91.627 | BID: 91.731 | ASK: 91.737 | CHANGE: -0.26% | TIME: 08:01:07
OUTLOOK SUMMARY: Down
TREND CONDITION: Downward penetration
TRADERS SENTIMENT: Bullish
IMPLIED VOLATILITY: High
Upwards scenario: Price finally stabilized after the initial market decline and currently is looking for priority in direction. Break above the fractal level at 92.27 (R1) is required to generate recovery action and expose our intraday targets at 92.64 (R2) and 93.03 (R3). Downwards scenario: As long as price stays below the next resistance level our medium-term outlook would be negative. Next on tap is support level at 91.39 (S1). Instrument might face next hurdle at 91.00 (S2) and 90.59 (S3) in case of positive retest here.
Resistance Levels: 92.27, 92.64, 93.03
Support Levels: 91.39, 91.00, 90.59
Prepared/Published By FXCC Forex Trading Blog.