- EUR / USD reverses the recent strength and revises the 1.1640 zone.
- The greenback regains some lost ground and bounces from the lows.
- Italian industrial sales grew 0.8% year-on-year in August and 13.8% year-on-year.
The single currency is now facing some selling pressure and is forcing the EUR/USD to fall back to the 1.1640 region.
EUR / USD offered by the recovery of the USD
After three consecutive daily rallies, the EUR / USD is now giving away some of its gains after once again faltering in the area of recent highs near 1.1670.
The modest recovery in the greenback leads the pair and the rest of the currencies associated with the risk to lose some ground after the recent strong advance.
Indeed, better sentiment around riskier assets coupled with speculation that many G10 central banks might be considering the idea of an earlier-than-anticipated return to monetary policy normalization weighed on the dollar in past sessions. and it promoted a fairly strong downward movement in the US dollar index.
In the data space, industrial sales in Italy grew 0.8% monthly during August and 13.8% compared to a year earlier. In France, business confidence was unchanged at 107 for the current month.
Across the pond, weekly jobless claims will be aided by the Philadelphia Fed Manufacturing Index, housing data, CB index, and the FOMC’s C.Waller speech.
EUR / USD levels
At time of writing, the pair is down 0.06% to 1.1640 and is facing the following resistance at 1.1669 (monthly high on October 19), followed by 1.1711 (55-day SMA) and finally 1.1755 (weekly high on September 22).
On the other hand, a break below 1.1607 (20-day SMA) would head to 1.1571 (Oct 18 low) en route to 1.1524 (2021 bottom posted Oct 12).
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