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  • The pair comes under further selling pressure early in Europe.
  • The greenback climbs to fresh tops beyond 95.50.
  • The Italian fiscal front remains the main concern among investors.

The single currency remains under heavy pressure during the first half of the week and is now dragging EUR/USD to print fresh daily lows in the 1.1540/30 band.

EUR/USD focused on Italy, Powell

Spot remains entrenched well into the negative territory on Tuesday, navigating its fifth consecutive session with losses after last week’s rejection from tops beyond 1.1800 the figure.

EUR stays unable to gather some serious attention as concerns over the Italian fiscal sector, particularly around the recently announced 2.4% budget deficit, keep buyers at bay for the time being. Adding to the downbeat sentiment, recent comments by EU officials on the matter were not supportive either.

Looking ahead, and apart from Italy, market participants will look to the speech by Chief J.Powell on employment and inflation. Atlanta Fed R.Kaplan and FOMC’s R.Quarles will also speak later.

EUR/USD levels to watch

At the moment, the pair is losing 0.25% at 1.1549 and a break below 1.1536 (low Sep.28) would target 1.1526 (low Sep. 10) en route to 1.1508 (low May 29). On the upside, the next hurdle aligns at 1.1653 (21-day SMA) seconded by 1.1683 (10-day SMA0 and then 1.1815 (high Sep.24).