FxWirePro: EURUSD upside capped by 7- day MA and Italy political uncertainty prevents further jump, markets eye US PPI data

EURUSD has pared some of its loss made yesterday. The pair hits low of 1.14322 and shown a recovery of more than 70 pips from that level. The slight decline US 10 year yield after hitting multiyear high of 3.25% and it has lost more than 1.5%.

The political uncertainty in Italy is also pushing Euro prices down. The Italian 10 year bond yield has jumped sharply till 3.75% and is currently trading around 3.46%. Overall trend of Euro is still and rise in US yield will going to boost US dollar.

The pair recovered slightly till 1.15150 and started to show a minor sell-off. The near term resistance will be  around 1.15497 (Oct 5th high)-1.1560 (10- day MA) and any violation above targets 1.15937 (Oct 3rd high)/1.1630 (20- day MA).

The near term major support is around 1.14094 (161.8% fib) and any convincing break below targets 1.13475/1.1300. Any break below 1.1300 shows that minor bullish trend from 1.1300 got completed at 1.18153 and further deep selling is on the cards.

It is good to sell on rallies around 1.1565-70 with SL around 1.1630 for the TP of 1.1305.