EURUSD pares most of its gains made after Fed policy and lost nearly 80 pips. The slight dovish Fed, yield curve inversion and US government shutdown is the main reason for jump in Euro. The pair hits high of 1.14858 and is currently trading around 1.14240.
The major factor which affects EURUSD price are
US bond yield: US 10 year yield has shown a minor recovery of more than 2.5%. It is currently trading around 2.807%. US 2year yield is around 2.674% 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 slightly higher after a more than 10% in past two trading session and is currently trading around 2.80%. The spread has declined to 257 basis point from 330 basis point (sightly positive for Euro).
On the higher side, near term resistance is around 1.1500 level and any violation above targets 1.155/1.1600. The pair should break above 1.1500 for further direction.
The near term support is around 1.1400 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 1.1455-60 with SL around 1.1500 for the TP of 1.1300.


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