EUR/USD keeps the rally alive above 1.1600

  • The pair keeps pushing higher and tests the 1.1600 handle.
  • The greenback remains depressed around the 95.00 neighbourhood.
  • EMU’s Industrial Production, US U-Mich index next on tap.

The bid tone around the single currency remains unabated at the end of the week and is now lifting EUR/USD to fresh tops beyond 1.1600 the figure.

EUR/USD looks to Italy, trade

The demand for riskier assets has intensified as of late following some better mood in the US-China trade front after President Trump and his Chinese peer Xi Jinping will meet at the G20 gathering in November.

In addition, the sharp retreat in yield of the US 10-year note has impacted on the greenback and forced the US Dollar Index to fade the recent advance and return to the 95.00 handle, or fresh multi-day lows.

Furthermore, lack of relevant headlines from the Italian political arena has been also collaborating with the better sentiment surrounding the shared currency

In the data space, final German CPI figures matched the preliminary prints for the month of September, while Industrial Production figures during August are next on tap. Across the pond, the advanced gauge of the US Consumer Sentiment for the current month will be the salient event.

EUR/USD levels to watch

At the moment, the pair is gaining 0.01% at 1.1595 and a break above 1.1610 (high Oct.12) would target 1.1620 (21-day SMA) en route to 1.1629 (100-day SMA). On the flip side, immediate contention emerges at 1.1432 (low Oct.9) seconded by 1.1326 (200-week SMA) and finally 1.1299 (2018 low Aug.15).

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