FxWirePro: EURUSD struggles to hold above 1.1300 level, good to sell on rallies

Potential Reversal Zone (PRZ)- 1.13350

EURUSD is consolidating after hitting high of 1.3238 on Friday. It is trading higher for past two weeks and jumped more than 140 pips from low of 1.18500.The jump was mainly due to technical pullback and easing US-Sino trade tension. Markets have digested dovish ECB policy and Fed minutes. US PPI data came better than expected and University of Michigan consumer sentiment has shown a minor decline to 96.90 compared to estimates 98.40.The pair hits low of 1.12927 and is currently trading around 1.13085.

The yield spread between US 10 year and German bunds has widened from 241 basis point to 250basis point.

On the higher side,1.1350 (100- day MA) and any violation above targets 1.1380/1.14200.Any break above 1.1450 confirms minor trend reversal.

The near term support is around 1.1274 (20- day MA) and any break below confirms slight weakness and a dip till 1.1230/1.1200 is possible. Any break below 1.11760 confirms that bullish trend has stopped at 1.14482 and decline till 1.1100 is possible.

It is good to sell on rallies around 1.13350-370 with SL around 1.13800 for the TP of 1.1255/1.1200.