- The selling mood prevails in the pair for the time being.
- The greenback stays bid in the vicinity of the 96.00 handle.
- EMU’s Sentix Index came in below expectations in October.
The bearish mood around the European currency remains unabated so far on Monday and is taking EUR/USD to the area of daily lows near 1.1470.
EUR/USD weaker on Italy, USD-buying
The downtrend in spot appears to have resurfaced at the beginning of the week following a strong pick up in the demand for the greenback and fresh jitters over the Italian front.
In fact, Italian stocks are following the downbeat sentiment today, particularly the banking sector, where Unicredit, UBI and Mediobanca all being halted after reaching the limit down.
Today’s docket is not helping EUR either, with investor confidence gauged by the Sentix index came in below expectations at 11.4 for the current month and German Industrial Production contracted at a monthly 0.3% in August.
EUR/USD levels to watch
At the moment, the pair is losing 0.42% at 1.1476 facing the next support at 1.1463 (low Sep.4) seconded by 1.1449 (50% Fibo of the 2017-2018 up move) and finally 1.1299 (2018 low Aug.15). On the flip side, a break above 1.1542 (high Oct.4) would target 1.1591 (10-day SMA) en route to 1.1636 (21-day SMA).
Share
