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FxWirePro: EURUSD pares gains in European trading on account of Italy crisis and weak German GDP data, good to sell on rallies

EURUSD has pared all gains made today morning. The pair has shown a dead cat bounce of more than 100 pips after hitting 17-month low. The Italy government has rejected European Commission demand. Italy has reaffirmed that it would stick to deficit target 2.4% and growth rate of 1.5%. The German 3rd quarter GDP came at -0.2% compared to forecast of -0.1%.It is currently trading around 1.12356 0.16% higher.

 

Markets eye US CPI data which is to be released today for further direction.

 

On the lower side, near term support is around 1.1200 and any break below targets 1.11500/1.1100 level.

 

The near term resistance is around 1.13520 (7-day MA) and any break above targets 1.13920 (20- day MA)/1.1435. The pair should break above 1.1500 for minor bullishness.

 

It is good to sell on rallies around 1.1300 with SL around 1.13520 for the TP of 1.1200.

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