EUR/USD firm above 1.1400, eyes on Brexit, Italy

The pair extends gains beyond the 1.1400 area on Monday.
The greenback stays under pressure in the 96.30 zone.
Attention remains on Brexit and Italy so far this week.

Pablo Piovano FXStreet

The upbeat tone in the European currency remains well and sound for another session and is propping up the advance in EUR/USD further north of the 1.1400 barrier.

EUR/USD looks to Brexit and Italy

The pair quickly recovered from the overnight drop to sub-1.1400 levels and is now navigating the upper end of the range in the 1.1420/30 band, always on the back of the continuation of the selling mood around the buck and vigilant on headlines from Brexit and Italy.

In fact, investors keep closely following events in the Brexit negotiations while uncertainty around PM May’s government keep weighing on the Sterling for the time being, lifting EUR/GBP and thus lending extra oxygen to EUR.

In Italy, effervescence remains intact in the political scenario, where issues around the 2019 draft budget stay in centre stage.

Later in the session, the BuBa’s monthly report is only due in Euroland, whereas the NAHB index and the speech by NY Fed J.Williams are expected across the pond.

EUR/USD levels to watch

At the moment, the pair is up 0.10% at 1.1425 facing the next hurdle at 1.1449 (50% Fibo of the 2017-2018 rally) seconded by 1.1502 (high Nov.7) and then 1.1516 (55-day SMA). On the other hand, a break below 1.1375 (21-day SMA) would target 1.1354 (10-day SMA) en route to 1.1214 (2018 low Nov.12).

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Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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