EURUSD: Sell on rallies

EURUSD has lost nearly 100 pips from high of 1.14122 made on Jun 25th 2019. US-China trade war tension eased after the G20 meeting. Risk sentiment lifted as the US and China have decided to restart trade talks. The pair declined more than 50 pips for the day and is currently trading around 1.13385.

The chance of 50bpbs rate cut by the Fed in July got diminished and this also supports the US dollar. Eurozone PMI for June came at 47.60 compared to forecast of 47.80 vs 47.7 in May. Markets eye US ISM manufacturing PMI data to be released today for further direction.

On the flip side, the pair is trading below 200 day MA and 23.6% fib (1.13448- 1.13415) and a dip till 1.13296 (20- day MA)/1.13260 (100- day MA). Any major weakness only below 1.132600.

The near term major resistance is around 1.1355-60 and any convincing break above will take the pair to next level till 1.1420/1.1445.

It is good to sell on rallies around 1.1368-70 with SL around 1.14200 for the TP of 1.12600.