EUR/USD fighting to stay above 1.23 as Italian elections head for hung parliament

• The Euro is faltering as the Italian elections point to a hung minority.
• Merkel's coalition success is providing support as SPD voted to accept.

The Euro took a hit as the quagmire of Italian elections weighs on markets, and with no clear frontrunner in the Italian election, the EUR/USD pair has bumped its way lower, currently trading near 1.2325 at the start of the Tokyo trading session.

The EUR/USD is back off its high point, shifting lower as the Italian election shapes up to be a convoluted mess; the overall theme of exit polls show the anti-establishment 5-Star Movement and Berlusconi's far-right coalition in the lead,  with the currently-governing center-left taking a hit. Further results and outcomes will continue to pour out of Europe throughout the day, but the current standings are doing little to provide confidence in the Euro, as Italy looks set for a hung parliament barring any further coalition agreements. 

The 5-Star Movement is currently leading in the votes, and despite a projected lack of majority, the party is nonetheless expected to capture the largest share of votes, while Berlusconi's conservative coalition also near the top of the pile. 

Propping up the Euro is German Chancellor Angela Merkel's successful coalition bid, with Merkel's CDU/CSU partnering with a majority of SPD party members voting to form a partnership with the ruling conservatives. Merkel's new cabinet is expected to form next week.

EUR/USD Technicals

The pair is trading healthily in bullish territory, far above the 200-day SMA and last week's bounce finding support from the 34 EMA. H4 charts have the pair backing off its recent highs, but strong bidding is keeping the pair afloat in bouts of aggressive buying. Current support levels are at 1.2250 and 1.2212, with resistance at 1.2350 and 1.2430.