EUR/USD shown a minor recovery after hitting low of 1.13020. Euro was trading weak on account of weak economic data and Italy’s political uncertainty. US ADP data shows that US private sector has added 227000 new jobs in Oct compared to forecast of 189K. The pair hits intraday high of 1.13522 at the time of writing and is currently trading around 1.13498. Market eyes US ISM manufacturing data for further direction.
Italy’s 10 year bond yield jumped more than 10% and German bunds yield also shown a good recovery. The spread between German bund and Italy 10 year yield declined by 5 basis point to 302 basis point.
On the higher side, 1.14350-1.14400 support turned into resistance will be acting as major resistance any break above targets 1.14800/1.1500/1.1550. The minor resistance is around 1.13600/1.1400.
On the lower side, near term support is around 1.13190 (220- W MA) and any close below confirms major weakness and a dip till 1.1200 is possible.
It is good to buy on dips around 1.1320-225 with SL around 1.12950 for the TP of 1.1550.
