Fundamentals:
Matteo Salvini's probable emergence with his league party expecting to boost the number of seats it holds from 6 to 27 currently could embolden a hardline stance on the nation's deficit or collapse the ruling coalition. Risks for Italian investors are two-fold in the wake of Parliamentary vote from 23-26 May if the League wins the elections which is in line with what the polls are suggesting. This adds on to the weakening sentiment driven by renewed tensions as US considers blacklisting 5 Chinese surveillance firms.
Technicals:
EUR/USD is in a bearish channel facing strong bearish momentum. We look to continue to play the drop down to our 1st support followed by our 2nd support.
The material has been provided by InstaForex Company - www.instaforex.com