The continuation of the sell off around the European currency dragged EUR/USD to test the vicinity of the critical support in the 1.1500 neighbourhood,

where it seems to have met some initial contention.

EUR/USD weaker on Italy, risk-off

Like in past sessions, the European currency has come under heavy pressure stemming from the rising uncertainty hitting the Italian fiscal sector, where the recently approved 2.4% budget deficit remains in the centre of the debate.

In addition, officials from the EU and the Italian government have been on the wires as of late, criticizing each other while failing to shed further light on the matter so far. Latest news cites Italy’s Head of Lower House Committee C.Borghi ruling out any plan to leave the single currency.

Data wise today, the only event of note will be the speech by Chief J.Powell on inflation and employment outlook, at 16GMT.

EUR/USD levels to watch

At the moment, the pair is losing 0.31% at 1.1542 and a break below 1.1505 (low Oct.2) would target 1.1449 (50% Fibo of the 2017-2018 up move) en route to 1.1299 (2018 low Aug.15). On the upside, the next hurdle aligns at 1.1653 (21-day SMA) seconded by 1.1683 (10-day SMA0 and then 1.1815 (high Sep.24).