- The pair attempts a rebound to the 1.1560 region.
- The greenback loses some momentum and returns near 95.20.
- All eyes on Italy as the 2019 draft budget will be presented to the EU.
EUR/USD is alternating gains with losses at the beginning of the week around 1.1560 following Friday’s pullback.
EUR/USD looks to Italy, Brexit, data
Spot is hovering over the 1.1560 region on Monday, as market participants remain vigilant on Italian politics and the Brexit negotiations.
In fact, investors will closely follow the developments in the Italian political arena today, where the government will present its 2019 draft budget to the EU. In light of the recent back and forth on the issue, market consensus still expects EU officials to call for a revision of the budget, prolonging the uncertainty.
In the same line, headlines from the Brexit negotiations should keep driving the sentiment around the Sterling and the broader risk-associated complex.
Looking ahead, Retail Sales for the month of September and the NY Empire State index will be the salient events later today in the NA session.
EUR/USD levels to watch
At the moment, the pair is losing 0.03% at 1.1556 and a break below 1.1528 (10-day SMA) would aim for 1.1432 (low Oct.9) and finally 1.1323 (200-week SMA). On the flip side, the next resistance aligns at 1.1599 (high Oct.11) seconded by 1.1615 (21-day SMA) and then 1.1628 (100-day SMA).
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