- The pair moves higher and reclaims the 1.1400 area on Wednesday.
- The greenback eases from tops and returns to the 96.70 region.
- Brexit talks, Italian politics remain as key drivers for the sentiment.
EUR/USD is regaining some buying interest following yesterday’s sharp sell off to the 1.1360 region.
EUR/USD looks to Italy, Brexit for direction
The single currency is now picking up some extra pace after Italy’s Salvini has opened the door for some revisions to the 2019 draft budget. The news is helping the pair to gain extra momentum after yesterday’s sharp decline following the wider gap between Italian and German bonds.
However, spot is poised to remain under pressure in light of Tuesday’s ‘bearish outside day’, which should allow for the continuation of the leg lower amidst some renewed demand for the greenback.
No data releases in Euroland today should leave the attention on the Brexit negotiations and Italian politics, whereas Durable Goods Orders, Initial Claims, Existing Home Sales and the final U-Mich index results are all due across the pond ahead of tomorrow’s Thanksgiving Day holiday.
EUR/USD levels to watch
At the moment, the pair is gaining 0.19% at 1.1392 facing the next barrier at 1.1502 (high Nov.7) seconded by 1.1509 (55-day SMA) and finally 1.1555 (100-day SMA). On the flip side, a break below 1.1359 (low Nov.20) would target 1.1348 (10-day SMA) en route to 1.1214 (2018 low Nov.12).
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