EUR/USD: Italy, and the weakness of the Dollar supported the pair, ahead of the Fed


© Reuters. EUR/USD fails to exceed 1.14

Investing.com – The EUR/USD pair continues to gain ground on Wednesday, with a peak at 1.1413 at mid-day, the highest for nearly 10 days.

The Euro-Dollar is benefiting in part from the decline of the Dollar, which suffers from the mistrust of the Fed meeting tonight to which the market anticipates elements dovish, despite the rate increase, which is expected to take place, a theme that supports the EUR/USD since the beginning of the week.

But in addition to the weakness of the Dollar, the pair is supported on Wednesday by good news in regards to the budget Italian. The European Commission has officially validated the last budget proposal of Italy, the deficit target of 2.04% have visibly settled to the european authorities.

The positive impact on the rate italians, and the Italian stock exchange is undeniable, and the other european stock markets also benefit from this optimism, as the single currency.

From a graphical point of view, theEUR/USD however, has not yet confirmed the break above the psychological threshold of 1.14 in spite of the two tests since yesterday.

Above 1.14, the bulls would be more in control, with potential targets at 1.1420-25, 1.1450, 1.1475 and 1.15.

In 1.14, it is the support of 1.1350, which could be seen as an objective of vendor, before 1.13, 1.1265 and 1.1215 (hollow annual 2018).

Finally, it will be recalled that the economic calendar US this Wednesday, will be the occasion of the publication of the sales of new homes, at 16h, but the market should increasingly focus on the Fed meeting.

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