EURUSD started the day with a recovery.
Yesterday, the bearish move happened even though Italy’s deputy prime minister Luigi Di Maio told Radio Radicale that his government is open to reducing the budget deficit. The bond markets responded positively to DI Maio’s comments. For instance, the spread between the Italian 10-year government bond yield and its German counterpart fell to 285 basis points – the lowest level since Oct. 5.
The EUR, however, was not impressed, possibly due to an uptick in the treasury yields. The 10Y Bond yield, for instance, jumped five basis points to 3.08 percent, likely due to fears that the scheduled speeches by the Fed officials, along with the FOMC minutes may call for a restrictive monetary policy (above-neutral interest rates).
Hawkish speech of FED members could lead the DXY above 97.20.
EURUSD is trading at 1.134000 as of writing, well below EMA 50 and MA 12 on the H4 Chart. No major macroeconomic data would be released today. Politics and FOMC Member Clarida’s speech will drive the pair today.
Key Levels Intraday:
1.13520 MM 0/8 & EMA 50 H1 Chart
1.13820 MM 5/8 Top of the trading range H4 Chart & Yesterday’s High
1.14120 MM 6/8 and SMA 100 on H4 Chart
1.13220 MM -2/8 Extremely Overshoot H1
1.12910 MM 2/8 Major Pivot Reverse H4
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