EURUSD trade higher for 2nd consecutive days and jumped more than 70 pips after the release of US ISM manufacturing data. It came much weaker than expected, which has increased hopes of rate cut by the Fed. Trump's government plans to impose tariffs on France up to $2.4 billion worth of imports is weighing on the US dollar. It hits a high of 1.10868 at the time of writing and is currently trading around 1.10792.
The US 10- year bond yield trades slightly higher and jumped more than 1.5% for the day. The spread between US 2and 10-year has widened slightly from 12.6 bps from 21 bps.
Technically near term major resistance is around 1.110, violation past will take the pair to next level till 1.1180. Major bullish continuation only beyond 1.1180.
On the flip side, minor support is around 1.10980 and any indicative break beneath will drag the pair till 1.095/1.0880. Major bearishness only under 1.0880 level.
It is good to buy on dips around 1.1068-70 with SL around 1.1020 for the TP of 1.11800.
