EUR/USD was trading in narrow range after a major sell-off. The major decline was mainly due to political uncertainty in Italy’s and hawkish fed. The Italian government approved budget of 2.4% and Italian bond yield gone up by more than 15%. German and Italian 10 year spread highest in 3 weeks. US 10 year bond yield has recovered more than 1.5% in today’s trading. Markets eye US ISM manufacturing index for further direction.
The pair has formed almost double bottom around 1.15700 and any violation below confirms further weakness.
On the lower side, near term support is around 1.1530 and any break below will drag the pair down till 1.1500. Any close below 1.1500 confirms further weakness.
The near term resistance is around 1.1660 and any violation above targets 1.1720/1.1745.
It is good to sell on rallies around 1.1618-20 with SL around 1.1675 for the TP of 1.1500/1.1435.
R1- 1.1660
R2 - 1.1720
R3- 1.1745
Support
S1- 1.1530
S2- 1.1500
S3- 1.1435
