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  • The pair’s decline met support in the 1.1560 region so far.
  • The greenback keeps session tops near 95.31.
  • US Core PCE came in at 2.0% YoY in August.

The sharp sell off in EUR/USD appears to have met some contention in the 1.1560 region so far on Friday.

EUR/USD keeps looking to Italy, data

The pair remains entrenched into the negative territory on Friday, navigating fresh 2-week lows in the 1.1580/60 band amidst rising jitters on the Italian fiscal front, the rally in the greenback and somewhat disappointing EMU’s CPI.

However, the pair seems to have met some buying interest around 1.1560 after today’s US docket left no room for surprises. In fact, inflation figures gauged by the Core PCE rose 2.0% on a year to August, while the monthly variation came in flat.

In addition US Personal Income expanded 0.3% inter-month (vs. 0.4% forecasted) and Personal Spending rose 0.3%, in line with prior surveys.

Later in the NA session and still in the US calendar, the Chicago PMI is up next followed by the final U-Mich reading for the current month.

EUR/USD levels to watch

At the moment, the pair is losing 0.43% at 1.1591 and a breakdown of 1.1526 (low Sep. 10) would target 1.1508 (low May 29) en route to 1.1299 (2018 low Aug.15). On the flip side, the next up barrier aligns at 1.1815 (high Sep.24) seconded by 1.1853 (monthly high Jun.14) and finally 1.1944 (200-day SMA).