EUR/USD recovers ground and tests 1.1530

The pair bounces off lows near 1.1480 and retakes 1.1500 and above.
The greenback met strong resistance in the vicinity of 95.80.
US Philly Fed index, EU Leaders Summit on focus later today.

Pablo Piovano FXStreet

After bottoming out in the 1.1480 region during early trade, EUR/USD met dip-buyers and regained the 1.1500 barrier and beyond.

EUR/USD looks to summit, data

Fresh USD-sellers appeared around the 95.80 region earlier in the day and prompted the current rebound in spot to the 1.1525/30 band, where it seems to have met some resistance.

EUR gained some ground after Italian PM Tria said the country aims to cut the debt/GDP ratio by 4.5% points in 3 years, adding that Italy needs to narrow the GDP gap vs. its European peers. In absence of further headlines from the Italian political scenario as of late, markets are seeing this news as positive despite the prevailing uncertainty around the matter.

Moving forward, EUR and GBP should be in the limelight in the second half of the week as the EU Leaders Summit is due to start later today, with its main focus on the ongoing Brexit talks.

Across the pond, usual Initial Claims and the Philly Fed index are next on tap in the US calendar.

EUR/USD levels to watch

At the moment, the pair is gaining 0.16% at 1.1520 facing the next up barrier at 1.1582 (55-day SMA) seconded by 1.1595 (21-day SMA) and then 1.1623 (high Oct.16). On the other hand, a break below 1.1482 (low Oct.18) would aim for 1.1432 (low Oct.9) and finally 1.1323 (200-week SMA).

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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