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Forex: EUR/USD edging higher after new Italian PM elected

FXstreet.com (Barcelona) - The EUR/USD is drifting higher during early trade in Asia, gapping up 36 pips from the previous close and currently trading at 1.3063. The pair seemed to get a boost from the news of Enrcio Letta being elected as the next Italian Prime Minister. The economic calendar during the coming Asia will be light with both Japan and China closed for holiday.

According to analysts at FXStreet.com, “After two months of an irreconcilable political deadlock, Enrico Letta, 46, and member of the centre-left Democratic Party (PD), was sworn in as new Italian Prime Minister on Sunday.”

They went on to add, “Letta, who has managed to pull together a 21-member Cabinet, while becoming the third youngest Prime Minister since World War II, nominated an unprecedented seven women to his Cabinet. Fabrizio Saccomanni was appointed finance minister, taking on the responsibility to overlook and bring forward much needed economic reforms to the economy.”

The technical picture remains the same as the previous few weeks, with the pair remain in a tight range as neither side being able to establish enough momentum to start a defined trend. From a short term perspective, the FXStreet.com Trend Index remains slightly bearish on the 1 hour chart, while the OB/OS Index reads neutral. Initial resistance sits at 1.3093 (high price from April 25th), followed by 1.3156 (the 100dma). Initial support sits at 1.2990 (the 45dma), followed by 1.2952 (the 200dma)

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