FxWirePro: EUR/USD trades below 1.1700 level after dismal German ZEW index, good to sell on rallies

• EUR/USD has pared most of the gains made yesterday. The pair has lost more than 80 pips from the high of 1.17905. The slight strength in the US dollar index and weaker than expected German ZEW Economic Sentiment. German ZEW index has declined sharply from -16.1 to 24.7 points compared to forecast of -18.0. While sub index also declined sharply to 72.4 compared to forecast of 78.2, missed market expectations by huge margin. The flattening of US yield curve is putting pressure on USD. The spread between 2 year and 10 year yield is at 28 basis point lowest level since Aug 2007.
   
• EUR/USD’s near term support is around 1.16500 (20- day MA) and any break below will drag the pair to next level till 1.1600/1.1500.Any break below 1.1500 confirms minor weakness and decline till 1.1400/1.13600 is likely.
  
   
• On the higher side, near term resistance is around 1.1750 (50- day MA) and any break above will take the pair to next level till 1.1795/1.1850/1.1900. 

It is good to sell on rallies around 1.1715-20 with SL around 1.1755 for the TP of 1.1845/1.1900