EUR/USD firmer, approaches 1.1400
|- The pair extends the upside momentum and eyes 1.1400.
- The greenback retreats further below the 97.00 handle.
- Focus remains on Italy and its 2019 draft budget.
The buying bias around the single currency stays well and sound so far in the first half of the week and is now pushing EUR/USD to test daily highs near 1.1400 the figure.
EUR/USD looks to Italy, trade
The pair is adding to Monday’s gains in a context favourable to the risk-associated complex, where trade concerns appears somewhat alleviated and some positive news from Italian politics has given some extra oxygen to EUR.
In fact, earlier news suggested Italian government could reduce the budget deficit to around 2.0% (from 2.4%), although nothing has been confirmed so far.
In addition, markets continue to adjust to the recent US-China 90-day trade truce, also collaborating with the sentiment around spot.
Nothing worth mentioning in the docket today, with only Producer Prices expected in Euroland.
EUR/USD levels to watch
At the moment, the pair is up 0.28% at 1.1387 and a breakout of 1.1403 (high Nov.29) would target 1.1434 (high Nov.22) en route to 1.1473 (high Nov.20). On the flip side, the next support emerges at 1.1267 (low Nov.28) followed by 1.1214 (2018 low Nov.12) and finally 1.1188 (61.8% Fibo of the 2017-2018 rally).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.