FWirePro: EURUSD continues to trade lower on possible US blacklist expansion, good to sell on rallies

EURUSD has once again declined after showing minor jump above 1.11750. Overall trend is still weak and fundamental factors are supporting US dollar.The main reason was Brexit uncertainty and UK PM May offers a plan to go for vote on second referendum and Euro jumped along with footsteps of Pound.But UK PM’s new Brexit deal got rejected as it was similar to old deal. US could blacklists additional Chinese surveillance companies which could escalate further tension and will increase demand for safe haven like dollar. It hits high of 1.11875 and is currently trading around 1.11690.

US 10 year and German bund spread is slightly widening from 243 basis point to 249 basis point. On the higher side, any convincing hourly close above 1.1180 confirms minor bullishness and a jump till 1.12240/1.12650 is possible. Any break above 1.12650 confirms major bullishness.

The near term support is around 1.1140 and any violation below targets 1.1100/1.1070.

It is good to sell on rallies around 1.12240-50 with SL around 1.12650 for the TP of 1.1100.