EURUSD pares most of its gains made after Fed hiked interest rates by 25 basis point for for fourth time in 2018 .The pair hits intraday high of and is currently trading around 1.139130.
The major factor which affects EURUSD price are
US bond yield: The US 10 year bond yield is trading weak for 4th consecutive day and broken recent low of 2.817% made on Dec 10th 2018.It hits intraday low of 2.78% and shown a minor recovery after Fed meeting.It is currently trading around 2.803%. US 2year yield is around 2.675% and 5- year yield around 2.66%. Short term yield (2- year) slightly above 5- year and yield curve has inverted.
German and Italy bond yield: The Italian 10 year bond yield is trading lower and has declined more than 5% for the day and is currently trading around 2.768%. The spread has declined to 254 basis point from 330 basis point (sightly positive for Euro).
On the higher side, near term resistance is around 1.14500 level and any violation above targets 1.1475. The pair should break above 1.1500 for further direction.
The near term support is around 1.1350 and any break below targets 1.1300/1.12600. Any violation below 1.1200 confirms bearish continuation.
It is good to sell on rallies around 1.1435-38 with SL around 1.14700 for the TP of 1.1300.


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