FxWirePro: EUR/USD struggles to hold above 1.1400 on Brexit uncertainty, good to buy on dips

EURUSD has lost nearly 90 pips on Brexit uncertainty. GBP was trading lower after UK PM May announced that there will be delay to the ’meaningful vote’.The pair hits high of 1.14427 yesterday and declined till 1.13505.It is currently trading around 1.13826.

The major factor which affects EURUSD price are

US bond yield: The US 10 year bond yield halted its weakness after a five days continuous downfall.It hits low of 2.817% and shown a minor jump till 2.879% . It is currently trading around 2.878%. US 2year yield is around 2.748% and 5- year yield around 2.738%. Short term yield (2- year) slightly above 5- year and yield curve inverted (negative for US Dollar)

German and Italy bond yield: The Italian 10 year bond yield has shown a jump of 8% from low of 3% and is currently trading around 3.15%. German bund yield has started to increase from low of 0.22% to 0.272% nearly 25% and spread has declined to 288 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 buy on dips around 1.1355-60 with SL around 1.1300 for the TP of 1.1500.