FxWirePro:EUR/USD Trade Idea

• EUR/USD is trading higher for the third consecutive day and hits 3- week high. The pair has started trading higher after US Non Farm Payroll data.US economy has added 213000 jobs in the month of June compared to forecast of 195000. Unemployment rate remains steady at 3.8% but wage growth came at 2.7% slightly below expectations of 2.8%. 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 1.1740 (50- day MA) and any break below will drag the pair to next level till 1.1700/1.16500 (20-day MA).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 1.17920 (55- day EMA) and any break above will take the pair to next level till 1.1850/1.1900.

It is good to buy on dips around 1.1740-45 with SL around 1.1700 for the TP of 1.1845/1.1900

Resistance

R1- 1.1780
 

R2 –1.1855
 

R3- 1.1900

Support               
 

S1- 1.1740
 

S2-1.1700
 

S3-1.1650