The Euro dropped to a new year-to-date low of 1.1753 versus the USD on Friday, amid fears surrounding Italy’s populist parties reaching a deal and broad USD strength. The pair managed to recover slightly towards the end of the session, closing around 1.1770, down 0.2%.
EURUSD is opening flat this morning, despite other majors improving versus the USD, with support around December 18 low of 1.1737 and then 1.17, the Fibonacci retracement based on January 17 gains. On the upside, it seems like 1.1820 would gather some selling interest.
The next move for the Euro will depend on further developments on Italian politics, which is putting a lot of pressure on European peripheral bonds.