EURUSD is consolidating after a minor jump from a low of 1.11250. Eurozone inflation came slightly better than expected at 1.3% Year on year in Dec and a 0.3% increase on the month. But no major movement saw after the release of data. Markets eye developments in US-Iran tension and US ISM services for additional direction. It hits a high of 1.12055 and is currently trading around 1.11820.
German bund yield is trading soft and hits 3-week low on the escalation of US-Iran tension and spread between the US and German 10-year yield widened slightly to 209 bps from 209 bps.
Technically near term important resistance is around 1.1245 and any indicative break above targets 1.12885/1.1300.
On the flip side, significant support stands around 1.1160 and the break beneath will drag the pair down till 1.11250/1.1100.
It is good to buy on dips around 1.1180 with SL around 1.1145 for the TP of 1.12850.
