EURUSD has shown a massive recovery of nearly 200 pips from low of 1.11813. The strength in the Euro was mainly due to the dovish Fed. Fed has kept its room open for rate cuts in the future. The European Central Bank also planning to give fresh stimulus through a rate cut or asset purchase program. On the data front, US flash manufacturing data released on Friday came weaker than the estimate. It came at 50.1 compared to 50.5. German IFO business climate came around 97.40 compared to forecast 97.4 but slightly less than 97.90. The pair hits an intraday high of 1.13949 and is currently trading around 1.13872.
Technically, the pair is above trend line resistance and 200- W MA (1.13370 and 1.13445) and this confirms short term bullishness, a jump till 1.14485 (Mar 2019 high) is likely.
On the flip side, near term support is around 1.13400 and any break below will drag the pair to the next level till 1.1300/1.12650.
It is good to buy on dips around 1.1370-725 with SL around 1.13300 for the TP of 1.14485.
