FxWirePro: Sell EURUSD on rallies

EURUSD has shown a minor jump of nearly 35 pips from low of 1.10398 made yesterday on upbeat German trade data. The trade balance came better than expected with exports rose 1.2%, the foreign trade balance showed a surplus of 2.15 billion euros in Oct. Markets eye US Fed and UK elections result for further direction.

The US 10- year bond yield trades slightly higher and topped more than 10% from low of 1.694%. The spread between US and German yield has widened slightly from 198 bps from 212 bps.

Technically near term major resistance is about 1.1120, violation past will take the pair to next level till 1.1180. Major trend reversal only beyond that level.

On the flip side, minor support is nearby 1.10350 and any significatory break beneath will drag the pair 1.1000. Extreme weakness only under 1.0980 level.

It is good to sell on rallies around 1.1075-78 with SL around 1.1120 for the TP of 1.1000.