EUR/USD firmer, recovery approaches 1.1600 ahead of ADP

• The pair is trading on a firm note in the upper-1.1500s.
• The greenback opened the session softer in the 95.30 region.
• Final Services PMIs in Euroland next on tap.

The demand for the single currency finally showed up in the proximity of the 1.1500 key support and is now lifting EUR/USD to the 1.1580/90 band, or daily highs.

EUR/USD keeps looking to Italy

After bottoming out in the boundaries of the 1.15000 neighbourhood in the first half of the week, the pair seems to have recovered some attention and is now up around a cent since those lows.

However, Italian politics remains a hot topic for the time being, with the budget deficit still in centre stage. It is worth mentioning that the official budget submission to the EU will be on October 15.

In addition, some renewed weakness around the greenback is also bolstering the corrective up move in the pair.

Looking ahead, final September Services PMIs in Euroland is due next seconded by EMU’s Retail Sales. Across the pond, the labour market will come to the fore in light of the release of the ADP report, while the key ISM Non-manufacturing will also grab attention.

EUR/USD levels to watch

At the moment, the pair is gaining 0.38% at 1.1591 and a break above 1.1654 (21-day SMA) would target 1.1676 (10-day SMA) en route to 1.1815 (high Sep.24). On the flip side, immediate contention aligns at 1.1505 (low Oct.2) seconded by 1.1449 (50% Fibo of the 2017-2018 up move) and finally 1.1299 (2018 low Aug.15).