Investing.com - The euro fell to seven-week lows against the dollar on Tuesday, amid concerns that Italian election results could threaten economic reforms and reignite financial instability in the euro zone. EUR/USD hit 1.3018 during late Asian trade, the pair’s lowest since January 4; the pair subsequently consolidated at 1.3037, shedding 0.20%. The pair was likely to find support at 1.2885, the low of December 10 and resistance at 1.3088, the session high. Italy’s center-left party led by the Democratic Party's Pier Luigi Bersani won the majority of votes in the lower house, the chamber of deputies, and was likely to receive the mandate to form a government. However, projections indicated that no party would be able to form a majority in the upper house or Senate, which could send Italy back to the polls. The euro was lower against the pound and the yen, with EUR/GBP down 0.36% to 0.8582 and EUR/JPY falling 0.45% to 119.37. Market participants were looking ahead to congressional testimony from Federal Reserve chief Ben Bernanke later in the trading day, after last week’s minutes of the central bank’s January meeting showed that some policymakers favored an early end to the Fed's monetary easing measures.

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