FxWirePro: EURUSD trades below trend line support, dip till 1.109800 likely
Major support- 1.0980
EURUSD declines once again after a minor jump till 1.10617 after the release of Purchase Manufacturing Index data. German Manufacturing PMI came at 45.2 in Jan vs forecast of 44.5, while services PMI stands at 54.2 in Jan vs 52.9 expected. The pair hit 7-week low yesterday after ECB President said in the press conference that chances of downside risks in Eurozone growth are high. It has tumbled to a low of 1.10282 at the time of writing and is currently trading around 1.10365.
German bund yield is trading weak for the past 10 days and spread between US 10-year and bund yield has widened slightly from 1.98 % points from 2.035 % points.
Technically, near term support is at 1.1020 and any violation beneath will drag the pair down till 1.100/1.0980 (Nov 29th, 2019). Major bearishness only beneath 1.0980 levels.
The significant intraday resistance is around 1.1070, any indicative break beyond targets 1.1120/1.1180. The decline from 1.14122 will get over at 1.08848 only if pair breaks 1.12850.
It is good to sell on rallies around 1.1065-68 with SL around 1.1120 for the TP of 1.1098.