Risk is off on the inconclusive Italian election risking a hung parliament (and possibly another election). The yen and the dollar feed on the euro misfortunes… EURUSD looks set to test the yearly low of 1.2998… EURJPY builds resistance in a 122.00\123.25 zone and looks offered enough to fall deeper into a wider support (119-112) zone… EURGBP added another clearly bearish print again yesterday and there is a setup for another attempt to shorten the pair. Below 0.8574 would target 0.8442…EURSEK is stuck in a 8.4475-8.4900 range, outside would open for 8.4150/8.4015 or 8.5000\8.5060… USDSEK on the other hand holds Jan peaks at 6.5530 & 6.5930 on the radar as long as not losing 6.35 again…EURNOK slides lower to detect support below, preferably around 7.4430/7.4270, but 7.4050/7.3985 would also do…EURPLN bounced hard on key support at 4.1350 and this puts renewed focus on topside refs at 4.1765, 4.1870 & 4.1955… The German Mar 10y Bund looks staged to extend gains towards the next target zone around 144.80\145.08… US Mar tens are also in fashion and looks set to test next attraction area around the 133-handle… The Mar S&P500 contract is in another tailspin and could fall towards 1473/68 before long. Resistance likely building around 1495\1501…NYMEX WTI oil confirmed resistance and is pushing to extend the drop, more in the shape of a grind rather than a free-fall below $91.50. Over $95.50 is needed to reduce immediate downside risks…
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