FxWirePro: Buy EURUSD on dips
EURUSD is consolidating after hitting a high of 1.11160 yesterday. The US dollar slumped sharply after dismal economic data.US ADP employment data came at 67k much worse than expected 140K and ISM services PMI also missed analyst's estimate. The overall trend of the pair is still bullish as long as support 1.10350 holds.
The US 10- year bond yield trades slightly higher and jumped more than 5% from low of 1.694%. The spread between US and German yield has widened slightly from 198 bps from 208 bps.
Technically near term major resistance is about 1.1120, violation past will take the pair to next level till 1.1180. Major trend reversal only beyond 1.1180.
On the flip side, minor support is nearby 1.10600 and any indicative break beneath will drag the pair 1.10300/1.1000. Major weakness only under 1.0980 level.
It is good to buy on dips around 1.1068-70 with SL around 1.1020 for the TP of 1.11800.