EUR/USD recovery halted ahead of 1.1490

The pair’s bullish attempt lost momentum near 1.1490.
The greenback bounces off lows in the vicinity of 95.80.
Italy, Brexit, risk trends ruling the sentiment so far.

Pablo Piovano FXStreet

After printing fresh daily tops in the boundaries of 1.1490, EUR/USD has now come under renewed selling pressure and is gyrating around the 1.1460 region.

EUR/USD keeps looking to Italy for direction

The pair clinched fresh session highs near 1.1490 in early trade following some selling pressure hitting the greenback along with declining US yields.

However, the up move was short-lived and run out of steam soon, motivating sellers to return to the markets as concerns over the delicate political scenario in Italy continue to weigh on investors’ sentiment.

In the meantime, headlines around Brexit are not helping the risk-associated universe either after UK government deemed as unacceptable the EU backstop proposal.

EUR/USD levels to watch

At the moment, the pair is up 0.01% at 1.1466 facing the next hurdle at 1.1508 (low May 29) seconded by 1.1550 (high Oct.22) and then 1.1553 (21-day SMA). On the downside, a breakdown of 1.1432 (low Oct.9) would target 1.1323 (200-week SMA) en route to 1.1299 (2018 low Aug.15).

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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