Forex: EUR/USD gather traction to 1.3070

The bloc currency left session lows in the vicinity of 1.3020, advancing to the area around 1.3065/70 amid rumours and counter-rumours in the aftermath of the Italian elections.

Yields in the Italian and Spanish bond markets are ticking higher with banks’ shares in the Italian stock exchange posting sharp losses so far. Further comments from Italy remarked that former PM Silvio Berlusconi has ruled out an alliance with the centre-left party led by Mario Monti.

At the moment, EUR/USD is advancing 0.07% at 1.3071
Next resistance levels lines up at 1.3089 (hourly high Feb.26) en route to 1.3123 (MA100d) and then 1.3319 (high Feb.25).
On the downside, a break below 1.3018 (low Jan.7) would accelerate the descent to 1.2998 (low Jan.4) and finally 1.2996 (low Dec.12).