Major Support - 1.09200
EURUSD has broken major support at 1.1000 and declined till 1.0960 on weak German manufacturing PMI. It came at 41.4 compared to 43.5 previous months, the lowest level since 123 months and Eurozone PMI fell to 83 month low at 45.6 in Sep down from 47 in Aug. It is currently trading around 1.09892.
The German 10-year bund is trading weak for the past one week and lost more than 35%. The spread between US yield and German bund has narrowed slightly from 230 bps to 223 bps.
On the flip side, near term support is around 1.09600 and any violation below targets 1.0925. Bearish continuation only below 1.09200.
The near term resistance is around 1.1030 and any break above will take the pair till 1.10677/1.1125.
It is good to sell on rallies around 1.10300 with SL around 1.10675 for the TP of 1.09250.
