Forex: EUR/USD holds 1.3050 despite Moody's headline

Following the news from the S&P rating agency that the political gridlock in Italy, had no immediate implications for Italy's BBB+ sovereign rating, although it warned that the uncertainty in policies are "numerous", now is Moody’s agency which crosses the newswires to say that Italy’s inconclusive election is ‘credit negative' for the country.

The EUR/USD has fallen over 15 pips on the news, although seems to be recovering. Technically, "the overall outlook remains bearish, despite the lack of momentum at the time being" says Valeria Bednarik, chief analyst at FXstreet.com. Short covering, according to the analyst, "could help the pair higher, yet as long as 1.3140 caps spikes, the downside remains favored."