Major resistance - 1.1180
EURUSD has once again declined after hitting high 1.11755 yesterday. It formed almost a double top (1.11795 Oct 21st high) and started to decline from that level. It is trading weak amid US-China trade optimism. According to the CME Fed watch tool, the probability of rate unchanged has increased to 91.9% from 80.5%. The pair hits an intraday low of 1.11126, is currently trading around 1.11151.
US10-year bond yield is trading higher for the day and jumped more than 3%. Any break above 1.91% confirms the bullish continuation. The spread between 2 and 10-year yield widened to 21 bps.
Technically, near term support is around 1.1100 and any break below will drag to 1.10700 which is acting trend reversal level.
The near-term major resistance is around 1.1180 and any bullish continuation can be seen only beyond that level.
It is good to sell on rallies around 1.1140-425 with SL around 1.1180 for the TP of 1.1070.
