EURUSD has declined slightly after showing a minor jump till 1.11067 yesterday. The pair is trading weak and major intraday weakness only below the hitting low of 1.0729. The incoming trade-related optimistic news is supporting Euro at lower levels. Markets already priced in 25 bps rate cut, any dovish tone will push dollar further down. It is currently trading around 1.10784.
US 10-year yield is trading higher for 3rd week and hits 1-1/2 month high. The spread between US and German bund 10- year yield widened to 218 bps from 211 bps.
On the flips side, near-term support is around 1.1070 and any violation below will drag the pair down till 1.10370/1.100.
The resistance is around 1.1120 and any convincing above targets 1.1150/1.11780. Minor trend reversal only above 1.11780.
It is good to sell on rallies around 1.1120 with SL around 1.1178 for the TP of 1.100.
