FxWirePro: EUR/USD trades below 1.1700 level, markets eye US CPI and ECB minutes meeting for further direction

• EUR/USD has pared some of the gains made yesterday after better than expected US producer price (PPI). US producer prices came at 3.4% y-o-y highest level since Nov 2011. US has threatened to impose 10% tariff on another $200 bn in Chinese imports is also supporting US dollar. Markets eye US CPI and ECB minutes meeting for further direction. ECB governing council members has been split on the rate hike in the summer of 2019. Some of the members want hike slightly earlier then summer of 2019. The flattening of US yield curve is putting pressure on USD. The spread between 2 year and 10 year yield is at 30 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 1.1735-40 with SL around 1.1795 for the TP of 1.1600/1.1500.