During the speech of the head of the ECB Mario Draghi, the euro continued its decline, departing further from the resistance level of 1.1630. After the recent statements of the Federal Reserve, the dollar continues to strengthen.
Yesterday’s data from Italy showed a deterioration in the trade balance. Furthermore, populist statements by the Italian government continue to have a negative impact on the exchange rate of the single currency.
Considering the chart, we observe the continuation of the downward movement. We expect that the pair will soon update the annual lows and go to the levels of 1.1530 and 1.1455.
Therefore, we recommend taking short positions and setting a TP near the above-mentioned levels.
