EURUSD -0.33% was trading lower and has lost more than 80 pips from the high of 1.16246. The major decline was mainly due to political uncertainty in Italy’s and hawkish fed. The Italian 2019-2021 budget deficit is at 2.4%of GDP . The Italian 10 year bond yield gone up by more than 25% in past three trading days. German and Italian 10 year spread highest in 3 weeks. US 10 year bond yield has recovered more than 2% from low
US ISM manufacturing index for the month of September came at 59.8 slightly less than 61.3 in Aug highest level since May 2004.
On the lower side, near term support is around 1.1530 and any break below will drag the pair down till 1.1500. Any close below 1.1500 confirms further weakness.
The near term resistance is around 1.1580 and any violation above targets 1.1630/1.1660/1.1720/1.1745.
It is good to sell on rallies around 1.1550-525 with SL around 1.1605 for the TP of 1.1435.
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