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FxWirePro: EURUSD Daily Outlook

EURUSD was trading with negative bias after forming a double top near 1.11800 level. It has shown a minor decline below 1.1000 level and jumped more than 40 pips. The positive comments from White adviser Kudlow are putting pressure on Safe-haven assets like gold and dollar. It hits an intraday high of 1.10343 and is currently trading around 1.10321.

 

US retail sales came much more than anticipated in Oct mainly led by auto dealers and gas stations. It was 0.3% compared to an estimate of 0.2%, while Core retail sales 0.2% vs forecast of 0.3%. This shows that consumer spending remains strong in Oct on the strong jobs market and solid wage growth.   

 

US 10-year bond yield trading weak for 3rd consecutive days after forming a temporary top around 1.972%. The spread between US 2 and the 10-year yield has narrowed to 22 bps from 27.3 bps.

 

Technically, the pair took support near 61.8% fib at 1.0989 and below that level will drag down till 1.09395 low made on Oct 8th/1.09040 (Oct 2nd low). Major bearish continuation below 1.0880.

 

On the higher side, 1.10406-430 (200- 8H MA, Nov 11th high) acting as near term resistance of the pair. The next level followed by 1.1070 (support turned into resistance)/1.1100.   

 

It is good to buy on dips around 1.1028-30 with SL around 1.0989 for the TP of 1.1100.

By Rangarajan Hariharan
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