FxWirePro: Sell EURUSD on rallies

Major support - 1.1100

EURUSD hits a low of 1.0867 after Fed monetary policy and shown a minor recovery till 1.1269 level. It is currently trading around 1.1247.

The central bank cuts interest rates by 25 bps as expected for the first time since 2008 and stated that uncertainties on outlook remain, will act as appropriate. Core and overall inflation remain below 2%.

US 10 year yield has declined more than 1.5% from a high of 2.05% level and US 2 year bond yield is currently trading around 1.838%.

On the flips side, the pair has broken major support of 1.1100 and a decline till 1.0500/1.000 is possible.

The near term resistance is around 1.11752 (23.6% fib) and any break above will take the pair to next level till 1.1200/1.1230 (21- day MA)/1.12860 (Jul 11th, 2018 high). The minor resistance is at 1.1160.

It is good to sell below 1.1100 with SL around 1.1150 for the TP of 1.000.