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  • US Dollar Index rallies toward mid-97s on Tuesday.
  • Italy concerns continue to weigh on the shared currency.
  • Coming up: Speeches by FOMC members Bostic, Evans, and George.

The EUR/USD pair, which spent the majority of the day fluctuating above the 1.13 handle, came under pressure in the NA session and fell to its lowest level since November 15 at 1.1278 before going into a consolidation phase. As of writing, the pair was down 0.35% on the day at 1.1290.

Earlier today,  Italy’s ruling party La Lega’s economic adviser, Armando Siri, said that the government was considering to reduce the budget deficit to 2.2% or 2.3%, contradicting with the Reuters report that yesterday claimed Italy was looking to bring the deficit target down to 2% and weighing on the shared currency.

On the other hand, after closing the previous day above the 97 mark, the US Dollar Index edged higher in the NA session and rose to its highest level in two weeks near 97.50. The upbeat consumer sentiment report published by the Conference Board and hawkish comments from Richard Clarida, the Federal Reserves Vice Chairman, boosted the demand for the greenback. Ahead of speeches by FOMC members Bostic, Evans, and George, the DXY was up 0.37% on the day at 97.42.

Commenting on today’s data, “The US consumer is the most optimistic in the world The Conference Board Nov confidence index fell to 135.7 from 137.9 in Oct but it “remains at historically strong levels” according to Lynn Franco of the Board. Friday’s shopping surge was no fluke. Santa will be busy this year,” FXStreet Senior Analyst Joseph Trevisani said.

Technical levels to watch for

The pair could face the first support at 1.1260 (Nov. 14 low) ahead of 1.1215 (Nov. 12 low/2018 low) and 1.1180 (Jun. 27, 2017, low). On the upside, resistances are located at 1.1360 (20-DMA), 1.1430 (Nov. 22 high) and 1.1470 (Nov. 29 high).