FxWirePro: EURUSD trades lower on trade war escalation, good to buy on dips

EURUSD has lost more than 70 pips from high of 1.13479 amid weaker than expected US CPI data. US annual inflation came at 1.8% compared to forecast of 2.0%. But slight sstrength in US dollar was mainly due to

1. US-China renewed trade tensions and trump also threatened to slam additional tariffs for $300 billion worth Chinese goods if Chinese President Xi does not attend G-20 summit.
    
2. Trump also threatened to sanction Germany if Merkel continues to support Russia Nord 2 stream pipe line.

US 10 year yield down more than 3.5% after US CPI data and spread between US 01 year and 3 months has declined to 10 basis point from 2 basis point.

Technically, near term major support is around 1.1270 (100-day MA) and any convincing break below targets 1.1215/1.11750.

The near term resistance is around 1.13600 (200-day MA) and any indicative break above will take the pair higher till 1.1420/1.1450.

It is good to buy on dips around 1.1265-70 with SL around 1.1215 for the TP of 1.1420.