EURUSD consolidating in narrow range after hitting low of 1.12100. The pair has slightly recovered after better than expected Chinese PMI data and trade optimism over progress of trade talks between US and China.It hits intraday high of 1.12500 and trading around 1.12313. Overall trend is still weak as long as 1.1300 holds.Markets eye US retail sales and ISM Manufacturing index for further direction.
The yield spread between US and German 10 year has slightly widened from 241 basis point to 248 basis point.US 10 year yield recovered more than 4.5% after hitting fresh 14 -month low.
On the lower side near term support is around 1.11760 and any violation below will drag the pair till 1.1100.
The near term resistance is around 1.12500 and any convincing break above targets 1.13000 (200- H MA)/1.3350/1.3381 .It should break above 1.1450 for further direction.
It is good to sell on rallies around 1.1255-60 with SL around 1.1300 for the TP of 1.1150.
