EURUSD recovers slightly on German bund yield jump, markets eye Fed Powell's testimony

EURUSD has shown a minor recovery after a more than 200 pips decline from temporary top 1.14122 made on Jun 25th 2019. Markets await Fed chairman testimony before the Housing Financial Services Committee. The chance of 25 bpbs rate cut is high in the July month Fed policy but the probability of 50 bpbs rate cut has lowered after better than expected jobs data. The pair hits an intraday high of 1.12420 and is currently trading around 1.12399.

German bund yield hits the 2-week top and yield spread between US and German bund yield widened from 229 basis point to 237 basis point.

On the higher side, near term resistance is around 1.12560 (100- day MA) and any break above will take the pair to next level till 1.1300/1.13327.

The near term support is around 1.118000 and any violation below will take the pair to next level till 1.11500/1.1100.

It is good to sell on rallies around 1.1265-68 with SL around 1.1300 for the TP of 1.1100.