FxWirePro: EUR/USD trades higher on declining Italy -German yield spread, markets eye ECB policy

EUR/USD has once again taken support near 1.1300 level and shown a minor recovery on US-China trade deal hopes and easing Italy budget deficit problem. The spread between Italy and German yield declined to 20 basis point from 330 on account progress in Italy and European Commission. Markets eye ECB monetary policy meeting to be held today for further direction. ECB is expected to quit the QE program by this year end and also to publish new growth and inflation forecasts. Any hawkish policy by Draghi will make the Euro to trade higher and will reach 1.1500 level. It is currently trading around 1.13790.

On the higher side, near term resistance is around 1.1400 level and any violation above targets 1.1400/1.1450. The pair should break above 1.1500 for further direction.

The near term support is around 1.1300 and any break below targets 1.12600/1.12180. Any violation below 1.1200 confirms bearish continuation.

It is good to buy on dips around 1.1320-25 with SL around 1.1270 for the TP of 1.1500.