The EUR/USD pair had a bullish showing on Wednesday as the markets bounced high enough to test the 1.30 level again, but as it has over the last three sessions, the level offered too much resistance for the buyers to get over. There are still plenty of problems in Europe, and while everybody has worried about Cyprus, there’s still the issue of Italy that nobody seems to be paying attention to. With this being the case, we think that as soon as the Cyprus issue is somewhat settled, the market will start focusing on the lack of a governing coalition in Italy as well. In other words, were going to run from one crisis to another in the European Union. With that being said, selling rallies seems to be the smart thing to do in this market.
Written by FX Empire