EURUSD pared most of its gains made yesterday. The pair hits high of 1.1550 and declined sharply more than 100 pips on account of broad based dollar buying and huge slump in stock market. The Italian yield shown a minor jump of 10% from low of 3.26% and is currently trading around 3.45%. German 10 year bund yield has slumped more than 10% and spread between German bund and Italy yield has increased by 18 basis point to 300 basis point.
Technically the pair is strong resistance at 1.1560 (20- day MA) and any minor bullishness only above that level. Any convincing break above targets 1.16212 high made on Oct 16th
On the lower side, any break below 1.14300 confirms bearish continuation. The minor support is around 1.1500.
It is good to sell on rallies around 1.1500-25 with SL around 1.15500 for the TP of 1.1305.
