FxWirePro: EUR/USD trade idea

EURUSD has pared most of its loss yesterday and jumped nearly 80 pips on broad based US dollar buying. The improvement in risk sentiment on account of US-China trade talk optimism has reduced safe haven demand. The pair hits high of 1.13575 and is currently trading around 1.13520.

The narrowing of spread between US and German bund is also supporting Euro. The spread between US S and German has declined from 259 basis point to 254 basis point. Any trend line break below 251 basis point confirms further decline till 245 basis point.

On the higher side, near term resistance is around 1.13820 (300- 4 H EMA) and any break above targets 1.1435/1.1500. The pair should break above trend line resistance 1.1500 for further bullishness.

The near term support is around 1.13000 and any violation below targets 1.12670/1.12340/1.12150. It should break below 1.12150 for further weakness.

It is good to buy on dips around 1.1300 with SL around 1.12670 for the TP of 1.13830/1.1400.

Resistance

 R1- 1.13820

R2 -1.1435

R3- 1.1500

Support               

S1- 1.1300

S2- 1.12570

S3- 1.1230