Major resistance- 1.10500 (10- day MA, 300-H EMA and 38.2% fib)
EURUSD continues to trade higher for 2nd consecutive day for 3rd consecutive days on hopes of fresh trade talks between US-China. The pair jumped more than 30 pips for the day and hits intraday high of 1.10670. Markets eye US ADP employment and US ISM services PMI for further direction.
US 10 year yield jumped more than 6.5% from a fresh 3-year low of 1.431% and spread between US 10 year and German bund has narrowed to 214 bps from 224 bps.
The near term major resistance is around 1.10500 and any violation above targets 1.10880/1.1100. Any major bullishness only above 1.1170.
On the flip side, near term support is around 1.1000 and any break below will drag the pair to the next level till 1.09600/1.09250.
It is good to buy on dips around 1.10275-30 with SL around 1.0990 for the TP of 1.1160.
