EURUSD has broken major resistance 1.1429 (55- day EMA) after a long consolidation.The pair hits high of 1.14427 after slight weaker than expected US Non Farm Payroll. It is currently trading around 1.14352. US economy has added 155000 in the month of Nov compared to forecast of 198000 and average hourly earnings came at 0.2% m/m compared to forecast of 0.3%.
The major factor which affects EURUSD price are
US bond yield: The US 10 year bond yield is trading lower for 3rd consecutive day and hits low of 2.817%. It is currently trading around 2.844%. US 2year yield is around 2.75% and 5- year yield around 2.74%. Short term yield (2- year) above 5- year and yield curve inverted (negative for US Dollar)
German and Italy bond yield: The Italian 10 year bond yield has shown a jump of 8% from low of 3%. German bund yield has started to decline after 15% jump from yesterday’s low and spread has increased to 295 basis point from 270 basis point (sightly negative for Euro).
On the higher side, near term resistance is around 1.14500 level and any violation above targets 1.1475. The pair should break above 1.1500 for further direction.
The near term support is around 1.1360 and any break below targets 1.1300/1.12600. Any violation below 1.1200 confirms bearish continuation.
It is good to buy on dips around 1.1400 with SL around 1.1360 for the TP of 1.1500.
Resistance
R1- 1.1450
R2 - 1.1500
R3- 1.1555
Support
S1- 1.13600
S2- 1.1300
S3- 1.1260


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