- The pair regains the 1.1600 handle and above on Monday.
- After clinching tops near 95.30, DXY lost momentum and eased to 95.10.
- US September ISM Manufacturing next of relevance in the docket.
The renewed offered bias around the greenback lent some oxygen to EUR/USD and pushed it back above the 1.1600 handle on Monday.
EUR/USD now looks to US ISM
The pair is now reverting three consecutive daily pullbacks and has regained the 1.1600 and beyond after bottoming out in the 1.1570/65 band on Friday.
The better mood in the Italian fixed income markets plus the absence of fresh headlines around the recently announced 2.4% budget deficit in Italy appear to be bolstering the recovery in spot along with some softness around the buck.
Still in Italy, Joseph Trevisani, Senior Analyst at FXStreet noted: “The Italian budget forces the EU to fight on two fronts. Externally against the UK in the Brexit negotiations and internally against the populist anger in one of the Union’s core nations. The Italian threat is far greater”.
Data wise today, German Retail Sales surprised to the downside during August while the final print of the manufacturing PMI in the euro area came in a tad below expectations.
Looking ahead, the ISM will publish its manufacturing gauge for the month of September seconded by the speech by Boston Fed E.Rosengren (2019 voter, centrist).
EUR/USD levels to watch
At the moment, the pair is up 0.03% at 1.1608 facing the next hurdle at 1.1658 (21-day SMA) seconded by 1.169 (10-day SMA0 and then 1.1815 (high Sep.24). On the downside, a break below 1.1567 (low Sep.28) would target 1.1526 (low Sep. 10) en route to 1.1508 (low May 29).
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