EUR/USD 0.06% continues to trade weak after weaker than Eurozone economic data. Eurozone GDP came at 0.2% compared to forecast of 0.4% and yoy growth slowed to 1.7% from 2.2% in the second quarter. US consumer board consumer confidence came at 137.9 highest level since Sep 2000. The pair hits low of 1.13360 at the time of writing and is currently trading around 1.13400.Markets eye Eurozone CPI 0.32% data and US ADP data for further direction.
Italy’s 10 year bond yield jumped more than 10% and German bunds yield also shown a good recovery. The spread between German bund -0.10% and Italy 10 year yield declined by 4 basis point to 307 basis point.
On the higher side, 1.14350-1.14400 support turned into resistance will be acting as major resistance any break above targets 1.14800/1.1500/1.1550.
On the lower side, near term support is around 1.13190 (220- W MA) and any close below confirms major weakness and a dip till 1.1200 is possible.
It is good to buy on dips around 1.1320-225 with SL around 1.12950 for the TP of 1.1550.
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