EURUSD pared most of its loss made on Friday. The pair hits low of 1.14332 and jumped more than 100 pips. The main reason for the jump is slight ease in Italy budget issue. The 10 year Italy bond yield has fallen more than 15% from the high of 3.85%. It is currently trading around 3.30%. German 10 year bund yield has jumped more than 20% from low of 0.406%. the spread between German bund and Italy yield has declined by 25 basis pint to 282 basis point.
Technically the pair is trading slightly above 200- H MA at 1.15390 and any houlry close above targets 1.1600/1.16200. Any convincing break above 1.16212 high made on Oct 16th confirms further jump till 1.1700/1.1745.
On the lower side, any break below 1.14300 confirms bearish continuation. The minor support is around 1.1500.
It is good to buy on dips around 1.15000 with SL around 1.14600 for the TP of 1.16200.


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