EUR/USD: testing key monthly support on Italian referendum - parity is not far off now

EUR/USD is down to test a key support level and 2016 lows at 1.0517 with a low of 1.0533 so far on the prospects of Renzi resigning after a no vote win in the Italian referendum.

EUR/USD opened the day with a bearish gap as exit polls showed the 'No' vote heavily in the lead.

Italian referendum: 'No' wins in most regions

PM Renizi's Democratic Party's plan was to enact a highly ambitious government overhaul and the largest in decades as a bid to end unstable coalition building by stripping the upper house of parliament of the ability to bring down governments. The number of senators would be cut by two-thirds. In accordance with Article 138 of the Constitution, this referendum was called because the constitutional law had not been approved by a qualified majority of two-thirds in each house of parliament in the second vote. However, the polls show this has not gone in Renizi's favour and we now await his speech that has been delayed by 20 minutes and official results.

EUR/USD downside levels

Below 1.0523/18 lies the March 2015 low at 1.0457 ahead of parity.