- EUR/USD moves off lows as US dollar losses strength.
- Market sentiment and Italian budget uncertainty affected EUR.
The EUR/USD pair bottomed at 1.1458 earlier today, hitting the lowest intraday level since August 20 and then bounced to the upside trimming losses. As of writing was trading at 1.1490/95, down 30 pips for the day.
The pair moved to the downside amid a stronger US dollar, particularity against European currencies. The euro remains affected by uncertainty surrounding the Italian budget crisis and the EU. Bond yields in Italy continue to rise reflecting the concerns. Italian official mentioned that is not its intention to leave the euro but those comments failed to removed uncertainty. The euro also lost ground today versus the pound and the Swiss franc.
Price action remained limited during the last hours amid a holiday in the US. Equity prices in Wall Street were falling modestly, after trimming losses during the last hours. The sharp slide in Chinese markets affected sentiment.
EUR/USD levels to watch
To the upside, immediate resistance might be seen at 1.1500 followed by 1.1535/40, 1.1560 and 1.1590/95 (Oct 3 high). On the flip side, support could be located at 1.1455/60. A consolidation below the mentioned level could open the doors to more losses targeting 1.1445 and below the 1.1400 area would be exposed.
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