Major support - 1.1300
Euro has pared some of its losses made on Friday and jumped more than 50 pips on slight easing in Italy political problem. The Italy’s Deputy PM Matteo Salvini said that budget deficit will be lowered over the weekend. The Italy 10 year yield has declined more than 15% from the high of 3.76% and spread between Germany and Italy reduced to 290 basis point from 330. The pair hits high of 1.13837 and is currently trading around 1.13640.
On the higher side, near term resistance is around 1.1435 and any break above targets 1.14700/1.1500.
The near term support is around 1.1300 and any break below targets 1.1200 level.
It is good to sell on rallies around 1.1425-30 with SL around 1.1475 for the TP of 1.13000.
