The EUR/USD pair rose on hopes the EU is getting closer to a solution as the Italian PM has promised to resign. However, at the same time Italian bonds are spiking to the highest levels since joining the EU. The situation isn’t’ healthy, and as a result, this market could be forming a bit of a bull trap at this point. The 1.39 – 1.40 area is above, and it looks quite resistive at this point. We would look to sell on weakness in that area as marked on the chart. (Yellow area.)
Written by FX Empire