Bullish AB=CD Pattern
Potential Reversal Zone (PRZ)- 1.1095
EURUSD trades lower for past three consecutive day and lost more than 100 pips on account of broad based US dollar buying and weak German IFO data. German IFO came at 99.2 compared to forecast of 99.70. The pair hits intraday low of 1.11348 an is currently trading around 1.11500. Markets eye US durable goods order fir further direction.
The yield spread between US and German 10 year has widened sharply from 241 basis point to 259 basis point and 2 year yield spread widened nearly 30 basis point in past 4 weeks.
On the lower side, near term support is around 1.1130 and any violation below will drag the pair to next level till 1.1100/1.1090.
The major resistance is around 1.11800 (support turned into resistance) and any break above will take the pair to next level till 1.1200/1.1230.
It is good to buy on dips around 1.1100 with SL around 1.0700 for the TP of 1.1230.