FxWirePro: EURUSD recovers more than 100 pips and near 1.1400 level, markets eye Draghi speech and US Fed meeting minutes

EURUSD has recovered sharply more than 100 pips after yesterday Fed Chairman Powell speech. Fed Chairman said that rates are “just below” neutral which fuelled hopes that Fed may close or pause interest rate tightening cycle. The pair hits high of 1.13976. It is currently trading around 1.13700.

Markets eye ECB President Draghi speech and US Fed meeting minutes for further direction. Italian government ministers has slashed their budget deficit from 2.4% to 2.2% but European Commission has not impressed with minor reduction.Morgan Stanley slashed Italy growth outlook to 0.5% for GDP next year compared Italian government forecast of 1.5% growth. The Italian 10 year bond yield is holding around 3.24% level and spread between German and Italy 10 yield is around 290 basis point compared to 330 bpbs.

On the higher side, 1.1435 will be acting as near term support and any break above targets 1.14750/1.1500. The pair should break above 1.1500 for further bullishness.

The near term support is around 1.13600 and any break below targets 1.1300/1.12690. Major support is around 1.32160 level.

It is good to sell on rallied around 1.1430-35 with SL around 1.14750 for the TP of 1.1300/1.12690.