EUR/USD has pared some of its losses made on Friday and jumped more than 100 pips ahead of US Fed policy Fed is expected to hike interest rates by 25 basis point and to be hawkish. German IFO data released today came slightly weaker than expected. It came at 101 points compared to forecast of 101.80 level.Italy and European Commission are still negotiating over budget issues. The spread between Italy and German yield declined to 270 basis point from 330. Markets eye US fed monetary policy for further direction. It is currently trading around 1.13374.
On the higher side, near term resistance is around 1.14000 level and any violation above targets 1.1450/1.1500. The pair should break above 1.1500 for further direction.
The near term support is around 1.1300 and any break below targets 1.12670/1.12180. Any violation below 1.1200 confirms bearish continuation.
It is good to sell on rallies around 1.1400 with SL around 1.14500 for the TP of 1.12180.
Resistance
R1- 1.1435
R2 - 1.1475
R3- 1.1500
Support
S1- 1.1300
S2- 1.1270
S3- 1.12180
