The Euro bounces off the 1.14326 support as investors worry less of about the economic and political implications of Italy's budget plan. The short-term shift in sentiment is mainly attributed to the lack of any recent news related to Italy's budget plan. Somehow, investors feel that the lack of news reports discussing issues or negotiations between the EU and Italy signal that the EU is not approaching Italy's unfavorable plan in an aggressive manner. For today, investors will shift their eyes towards U.S data, more specifically, investors will be focusing on the PPI figure. Today's PPI figures and tomorrow's CPI figures are very important for U.S Dollar investors due to Friday's mixed NFP report which failed to provide enough reason to develop a directional bias.
From a technical standpoint, it seems like the Euro will range throughout the day up until the release of the U.S PPI figure. A better than expected PPI print will strengthen the U.S Dollar and drive the Common currency into breaking the 1.14740 minor support exposing the major support at 1.14302. On the other hand, a worse than expected PPI print will allow the Euro to rise for a second day in a row and possibly lead the pair into breaking the 1.15351 resistance level and the 50-period moving average. The break of these key resistance levels will expose the 1.16042 level.
Support: 1.14740 1.14302
Resistance: 1.15351 1.16042