EUR/USD has pared some of its loss made on Friday and jumped more than 80 pips from the low of 1.13356.US GDP came better than expected .It expanded by a 3.5% annual rate compared to forecast of 3.3% expected. US dollar has declined despite positive economic data. The pair hits high of 1.14212 and is currently trading around 1.13940.
Italy has been downgraded by Moody but S&P global ratings has changed the outlook on Italy’s sovereign credit rating to negative from stable but left its debt ratings unchanged BBB. Italian 10 year bond yield declined more than 15%.
Markets eye US Personal income and PCE data for further direction.
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.
On the lower side, near term support is around 1.13300 and any violation below targets 1.1300. Extreme weakness only below 1.1300.
It is good to buy on dips around 1.13800 with SL around 1.1300 for the TP of 1.1550.
Resistance
R1- 1.14350
R2 - 1.14800
R3- 1.1550
Support
S1- 1.13300
S2- 1.1300
S3- 1.1250
