Forex: EUR/USD on new 1.29-1.32 range - Ashraf Laidi

Following the recovery in EUR/USD to fresh highs of the week circa 1.31, "Euro’s downside appear relatively supported near 1.2900 as the ECB holds off from cutting rates and an eventual fix in Italian politics via an effective formation of a pro-austerity government leads to stabilization in EURUSD" says Ashraf Laidi, founder at AshrafLaidi.com.

Ashraf notes that "Draghi’s opening remarks did not mention “appreciation of the euro” as a factor in downside risks to price developments as they did in February..." and that, plus "mentioning fewer factors to the downside price risks is naturally more positive for the currency, especially when currency appreciation itself is singled out as the distinctive factor between today and February" the analyst said. He tips 1.2900-1.3200 the new range until further clarity is obtained on Italian elections round 2.