- The pair struggles for direction in the 1.1500 neighbourhood.
- The greenback stays sidelined around the 95.60 region.
- Focus remains on Italian politics and US-China trade spat.
The recent moderate recovery in EUR/USD appears to have met strong resistance in the 1.1500 area for the time being amidst some rangebound in the greenback.
EUR/USD looks to Italy, data
The pair is looking to add to yesterday’s gains although a move further north of the 1.1500 barrier seems elusive for the time being.
Despite concerns over Italy, its fiscal sector and money markets seem somewhat mitigated at the moment, investors keep the cautious tone intact and therefore removing tailwinds from a potential correction higher.
In the data space, French and Italian Industrial Production figures are coming up next, whereas Producer Prices will be the salient event across the pond along with a speech by Chicago Fed C.Evans.
EUR/USD levels to watch
At the moment, the pair is gaining 0.13% at 1.1505 and a break above 1.1542 (high Oct.4) would target 1.1594 (55-day SMA) en route to 1.1626 (21-day SMA). On the flip side, immediate contention emerges at 1.1432 (low Oct.9) seconded by 1.1326 (200-week SMA) and finally 1.1299 (2018 low Aug.15).
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