EURUSD trades slightly higher after a 3 days of selling. The pair has lost more than 170 pips from the high made after Fed policy. The pair hits low of 1.12732 and is currently trading around 1.13170. German Ifo data released today came at slightly better than expected. It came at 99.6 compared to forecast of 98.7. It hits intraday high of 1.13232 and is currently trading around 1.13186.
US 10 year yield was trading lower and lost more than 4.5% on Friday. The 3 month yield was trading above 10 year for the first time since 2007.
The near term support is around 1.12670 and any violation below will drag the pair till 1.1230/1.12150/1.11760. Any violation below 1.1170 will drag the pair till 1.1100.
The near term resistance is around 1.13240 (20- day MA) and any convincing break above targets 1.1350/1.13820.It should break above 1.1450 for further direction.
It is good to sell on rallies around 1.13500 with SL around 1.1400 for the TP of 1.1180.
