EURUSD jumps till 21- day MA after dovish policy, markets eye ECB minutes

EURUSD has shown a good recovery of nearly 80 pips after the dovish Fed monetary policy. The Fed Chairman has opened the door for further rate cuts. According to CME, there is a 100% probability of rate cut in Jul month. Markets eye ECB Meeting minutes and US CPI for further direction. Any change in forward guidance will put pressure on the Euro. The pair hits an intraday high of 1.12810 and is currently trading around 1.12714.

German bund yield is trading further higher and the yield spread between US and German bund yield narrowed from 242 basis point to 232 basis point.

On the higher side, near term resistance is around 1.12800 (21- day MA) and any break above will take the pair to next level till 1.13327/1.13485.

The near term support is around 1.12385 and any violation below will take the pair to next level till 1.1200/1.11800.

It is good to buy on dips around 1.1255-58 with SL around 1.1200 for the TP of 1.13485.