FxWirePro: EURUSD Trade Idea

EUR/USD has pared most of its gains on rising Italy 10 year bond yield. The Italy 10 year bond yield rose sharply more than 10 % in past two trading session. The yield spread between Germany and Italy has widened to 333 bpbs from 270 basis point.The pair has lost nearly 50 pips from high of 1.14723. It is currently trading around 1.14150.

Technically near term resistance is around 1.14750 (55- day EMA) and any break above targets 1.1500/1.15500. The pair should break above 1.16200 for further bullishness.

On the lower side, near term support is around 1.1400 and any violation below targets 1.13600/1.1300.Major trend reversal below 1.12000.

It is good to sell on rallies around 1.1450-525 with SL around 1.1500 for the TP of 1.13600.

Resistance

R1- 1.1475

R2 - 1.1500

R3- 1.1550

Support               

S1- 1.1400

S2- 1.1360

S3- 1.1300