FxWirePro: EURUSD Trade Idea

EUR/USD unable to maintain gains made after US and China trade truce.The pair hits high of 1.14183 and lost nearly 100 pips from that level. The USD was gaining against all majors as optimism on trade talks was faded and US stock markets has shown a huge sell-off of more than 3% yesterday. But declining US bond yield to support EURUSD at lower levels. US 2- year yield surpasses 5 year for the first time in 10 years. The spread between German and Italy bond yield has increased to 288 basis point from 270 basis point. US 10-year yield drops more than 5% and has closed below 200-day MA.

On the higher side, near term resistance is around 1.13600 level and any violation above targets 1.1402/1.1435/1.1475. The pair should break above 1.1500 for further direction.

The near term support is around 1.1300 and any break below targets 1.1200. Any violation below 1.1200 confirms bearish continuation.

It is good to buy on dips around 1.13200 with SL around 1.12600 for the TP of 1.1475/1.1500.

Resistance

R1- 1.1365

R2 - 1.1402

R3- 1.1435

Support               

S1- 1.1300

S2- 1.1265

S3- 1.1200