EUR/USD looks to regain the 1.1600 handle and above

• The pair gives away initial gains to daily highs in the 1.1630 area.
• The greenback remains supported around the 95.00 handle.
• Markets stay focused on US-China trade issues, potential Iran sanctions.

After climbing as high as the 1.1630 area in early trade, EUR/USD met some serious selling interest that dragged it back to the 1.1590/80 zone, or daily lows.

EUR/USD looks to trade, USD

Spot is now struggling to continue the initial bull run to the 1.1600 handle and beyond amidst a moderate recovery in the greenback, which remains well contained near the critical support at 95.00 the figure.

Absent releases and events of note in both shores of the Atlantic, the usual jitters over the US-China trade dispute plus renewed effervescence between the US and Iran on potential extra sanctions appear poised to drive the sentiment in the near term.

An extra focus of attention should be on the Italian budget, after PM Conte’s said it will be ‘serious, rigorous, courageous’.

EUR/USD levels to watch

At the moment, the pair is down 0.01% at 1.1598 facing immediate contention at 1.1527 (low Jun.28) seconded by 1.1508 (2018 low May 29) and then 1.1479 (low Jul.20 2017). On the other hand, a breakout of 1.1635 (10-day SMA) would aim for 1.1661 (21-day SMA) and finally 1.1745 (high Jul.30).