EUR/USD loses ground
EUR/USD has finally broken out of the sideways zone on Thursday after two days of growth, rushing through the $1.3000 area and reaching $1.3060, following a revision of the US GDP slightly to the downside. However, on Friday EUR returned below the $1.3000 mark after a bunch of negative EU data releases. As of writing, the pair is testing support at $1.2980.
Comments of the Governor of the Bank of Italy Visco took the shine off the euro: he warned about the Italian financial risks and said the ECB is ready to intervene again on interest rates. What’s more, Italian unemployment rate rose from in April 11.4% to 11.9%.
We keep seeing the recent upside as a corrective move and stay bearish in a longer term with an initial target of $1.2750. Later in the day the US data are expected to show improvement, so the greenback could strengthen further. However, if the bulls push above $1.3060, upside could extend to $1.3100 or even to $1.3130. We would change our bearish view only above $1.3250.
Chart. Daily EUR/USD