EURUSD has formed a double bottom around 1.10555 and shown a minor recovery till 1.11993. US Fed has cut its rates to zero to support the economy. The central bank also said that it would purchase another $700 billion worth of Treasury bonds and mortgage-backed securities.
US 01-year yield declined more than 30% after a minor recovery till 0.958% and spread have narrowed sharply from 70 bps to 38 bps.
Technically, near-term support is at 1.1090 and any violation below will drag the pair to the next level till 1.1050/1.1000.
On the higher side, immediate resistance is around 1.1150 and indicative break above targets 1.1200/1.1245/1.12885.
It is good to buy on dips around 1.1120-225 with SL around 1.1080 for the TP of 1.1200/1.1245.
