EUR/USD has recovered sharply after a minor weakness till 1.3193.The pair jumped 1.13880 at the time of writing on account of minor weakness in US 10-year bond yield and declining spread difference between German and Italy bond yield. US 10-year yield drops more than 3.5% and has broken major support at 2.96% (200- day MA). Italian bond yields continues to fall and spread has been reduced to 280 bpbs from 330 bpbs.
On the higher side, near term resistance is around 1.14020 level and any violation above targets 1.1435/1.1475/1.1500. The pair should break above 1.1500 for further direction.
The near term support is around 1.1350 and any break below targets 1.1300. Any violation below 1.1300 targets 1.1260/1.1200.
It is good to buy on dips around 1.13450 with SL around 1.1300 for the TP of 1.1475/1.1500.
