- The pair remains entrenched into the negative ground on Monday.
- After testing tops above 96.00, the greenback is losing some momentum.
- Italy remains in centre stage as the exclusive driver of the markets’ mood.
After bottoming out in the 1.1460 region, EUR/USD is now attempting some recovery as the upside momentum around the greenback appears to be taking a breather.
EUR/USD looks to Italy for direction
The risk-off sentiment continues to prevail so far at the beginning of the week, lending extra support to the buck and the safe haven Japanese Yen, all amidst a re-emergence of market concerns around Italy.
On the USD-side, the greenback manages well to revert Friday’s pullback in the wake of September’s mixed Payrolls figures and is has now lifted the US Dollar Index to test last week’s peaks beyond 96.00 the figure.
Still in Euroland, ECB’s Knot said earlier in the session that overall inflation in the region has been above the bank’s definition of price stability for quite some time.
In data sphere, EMU’s Sentix index came in below expectations for the month of October at 11.4 vs 11.7 forecasted and September’s 12.0.
EUR/USD levels to watch
At the moment, the pair is losing 0.46% at 1.1471 facing the next support at 1.1460 (low Oct.8) 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).