FxWirePro: EURUSD Daily Outlook

Major support- 1.1000

EURUSD ha lost sharply after hitting a high of 1.1100 level after a sharp jump from the low of 1.09270 after ECB monetary policy. Markets are eagerly waiting for Fed monetary policy tomorrow. The expectations of 25 bps rate cut have trimmed from 92% to 66% a week ago. German ZEW sentiment index came at -22.5 in Sep up from -44.1 compared to the forecast of -38. It hits a low of 1.09930 and is currently trading around 1.10262.

US bond yield is holding higher and spread between US 10-year and German bund widened slightly 211 bps to 230 bps.

On the flip side near term major support is around 1.0960 and any violation below will drag the pair till 1.09200/1.0880.

The near term resistance is around 1.1050 and any break above will take the pair to next level till 1.1100/1.1120. Any minor trend reversal only above 1.1120.

It is good to sell on rallies around 1.10525-550 with SL around 1.11000 for the TP of 1.0930.