EUR/USD flirting with lows near 1.1670, Italy, Spain eyed

The pair comes under downside pressure around the 1.1670/60 band.
The greenback stays bid above the 94.00 handle ahead of Payrolls.
Focus on Italian politics, Spain confidence vote and US NFP.

Pablo Piovano FXStreet

The now softer tone around the single currency is forcing EUR/USD to trade in the lower bound of the daily range in the 1.1670/60 band ahead of the opening bell in Euroland.

EUR/USD attention to politics, Payrolls

The pair is now trading on the defensive following two consecutive sessions with gains on the back of a pullback in the greenback and some renewed optimism stemming from the Italian political arena.

However, today’s pick up in the demand for the buck, lack of further auspicious news in Italy and the likeliness that Spanish President M.Rajoy could be ‘forced’ to resign following a ‘no confidence’ vote appear to have removed tailwinds from the bullish attempt in EUR.

In the data space, final May’s manufacturing PMIs in Euroland are coming up next. Across the pond, all eyes will be on the publication of US Non-farm Payrolls for the month of May followed by the key ISM Manufacturing for the same period.

EUR/USD levels to watch

At the moment, the pair is losing 0.18% at 1.1671 facing the immediate support at 1.1642 (low May 31) seconded by 1.1511 (2018 low May 29) and finally 1.1479 (low Jul.20 2017). On the upside, a breakout of 1.1724 (high May 31) would target 1.1782 (21-day sma) en route to 1.1830 (high May 22).

Author

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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