- EUR/USD declined further in today’s trading and hits low of 1.1730 lowest level since mid-Dec. The pair weakness was mainly due to rising US 10 year bond yield. The yields hits fresh 7 year high at 3.10% yesterday and shown a minor profit booking. With no major economic data to be released today. Markets eye political development in Italy for further direction. The leaders of Italy’s two political party M5S and League agreed to form a government, where the new PM candidate might be named as early as today. It is currently trading around 1.17700.
- The major data to be released this week are ECB minutes and Fed minutes. On the higher side, near term major intraday resistance is around 1.1763 (hourly Kijun-Sen) and any break above will take the pair to next level till 1.1800/1.1860 (200- H MA). Short term bearish invalidation only above 1.2020 (200- day MA).
- The near term support is at 1.1715 (61.8% fibo) and any convincing break below will drag the pair to next level till 1.1660/1.1600.
It is good to sell on rallies around 1.1785-790 with SL around 1.1855 for the TP of 1.1715/1.1660.
Resistance
R1- 1.7650
R2 –1.1800
R3- 1.1855
Support
S1- 1.1715
S2-1.1660
S3- 1.1600
