- The pair’s stance remains bid near the 1.1600 handle.
- The greenback stays under pressure and tests the 95.00 support.
- US Retail Sales, NY Empire State index coming up next.
The upbeat tone around the European currency remains well and sound so far today and is now pushing EUR/USD to test daily highs in the vicinity of 1.1600 the figure.
EUR/USD looks to Italy, data
The pair has regained the smile at the beginning of the week and continues to revert last Friday’s pullback to the 1.1530 region, where sits the key 10-day SMA.
On the opposite side, the greenback appears to have resumed last week’s leg lower and is putting the critical 95.00 support to the test today, or fresh multi-day lows amidst a sideline performance in US yields and the continuation of the sour sentiment in stocks markets.
In the meantime, all eyes remain on Italy as today the government is expected to present the 2019 draft budget to the EU.
Ahead in the day, and in the absence of publications in the euro area, the US docket includes the NY Empire State index and Retail Sales for the month of September.
EUR/USD levels to watch
At the moment, the pair is gaining 0.30% at 1.1594 facing the next up barrier at 1.1600 (high Oct.15) seconded by 1.1615 (21-day SMA) and then 1.1628 (100-day SMA). On the downside, a break below 1.1528 (10-day SMA) would aim for 1.1432 (low Oct.9) and finally 1.1323 (200-week SMA).
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