FxWirePro: EURUSD trades below 1.11500 level on Middle East tension escalation, good to sell on rallies

EURUSD has lost more than 50 pips on US -Iran tension escalation. Iran strikes missile at US forces in Iraq at al-Asad and Erbil. Iranian state Tv said that attack is retaliation after the US killed top commander in a drone attack. The retail sales and Eurozone CPI came better than estimate yesterday and US ISM services at 55 vs forecast of 54.5. But geopolitical risk increased demand for Safe-haven assets like the US dollar. The pair hits low of 1.11254 at the time of writing and is currently trading around 1.11254.

German bund yield remaining flat after hitting 3-week low and spread between the US and German 10-year yield widened slightly to 209 bps from 204.5 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 1.1120 and the break beneath will drag the pair down till 1.10650/1.1030.

It is good to sell on rallies around 1.1168-70 with SL around 1.12055 for the TP of 1.1065.