EUR/USD was trading lower after a recovery of more than 90 pips. The slight jump in Euro after Italy projected lower budget deficit of 2% in 2021. But pair once again declined after Italy’s Di Maio confirmed that Italy budget deficit for 2019 will be 2.4% of GDP. The Italian 10 year bond yield gone up by more than 25% in past three trading days. German and Italian 10 year spread highest in 3 weeks. US 10 year bond yield has recovered more than 2% from low. Markets eye Italian budget meeting at 11:00 GMT. In US ADP and US ISM non manufacturing index data will be released.
On the lower side, near term support is around 1.1500 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 1.1575-80 with SL around 1.1605 for the TP of 1.1435.
