The euro ignored the news from Italy that Prime Minister Giuseppe Conte announced his resignation. The news came on Tuesday after weeks of speculation following discord with the Interior Minister. Conte blamed the minister for undermining the government’s efforts to pass its budget. The developments could potentially lead to fresh elections in Italy.
Will the EUR/USD Maintain the Upside Bounce?
The currency pair initially slipped to lows of 1.1064 before posting a strong rebound. The gains could be limited to 1.1100. However, a close above this level could see the resistance failing. This would potentially invalidate the bearish flag pattern and could put the euro on track to continue the upside. There is also a possibility of a double bottom that has formed near 1.1064. A breakout above 1.1112 could trigger the double bottom pattern.
