EUR/USD has pared some of its losses made on Friday and jumped nearly 70 pips on account of Profit booking. ECB was slightly dovish and has kept its interest rates unchanged. They are planning to wind up QE at end of the month and they will be reinvesting the redemption. ECB President was sightly pessimistic and has downgraded growth and inflation. Italy has agreed to European Commission and has reduced budget deficit to 2.04% from 2.4%. 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 1.13600 level and any violation above targets 1.1400/1.1450. 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 1.13500 with SL around 1.1400 for the TP of 1.12180.
