FxWirePro: EUR/USD recover sharply from 10 –month low on easing Italy’s political uncertainty, good to buy on dips

• EUR/USD rebounded sharply yesterday almost 180 pips from the low of 1.15187. The pair hits 10 –month low of 1.1510 on Tuesday on rising Italy Political uncertainty. Italy’s bond yield jumped sharply after President Mattarella decision to reject the choice of economic minister Paolo Savona since he is euro skeptic. Now Italian President has given more time for formation of government and Euro appreciated since chance of new elections are less in Italy. Eurozone inflation came at 1.9% in May near to target of 2%. Markets eye US PCE price index and personal spending data for further direction. It is currently trading around 1.16889.
   
• On the higher side, near term major intraday resistance is around 1.1750 (50% fib) and any break above will take the pair to next level till 1.1800/1.1830 .Short term bearish invalidation only above 1.2020 (200- day MA).
   
• The near term support is at 1.1500 and any convincing break below will drag the pair to next level till 1.1400/1.1355.

It is good to buy on dips around 1.1660 with SL around 1.1600 for the TP of 1.1800/1.1830.