- EUR/USD has pared some of the gain made yesterday after news came that Donald Trump will not interfere directly into forex market. US Treasury Secretary Mnuchin said in G20 meeting in Buenos Aires that Donald Trump’s to give full support for fed autonomy and not willing to interfere in foreign exchange market. US dollar has recovered slightly by 20 pips after losing almost 100 pips on Friday. The rising US China trade war and hawkish fed was supporting dollar prices.US 10 year yield has gained more than 2.5% and the spread between 2 year and 10 year yield is at 29 basis point compared to 23 basis point yesterday.
- EUR/USD’s near term support is around 1.1680 and any convincing break below will drag the pair to next level till 1.1650/1.1500.Any break below 1.1500 confirms minor weakness and decline till 1.1400/1.13600 is likely.
- On the higher side, near term resistance is around 1.1760 (55- day EMA) and any break above will take the pair to next level till 1.1800/1.18515.
It is good to sell on rallies around 1.1745-50 with SL around 1.1800 for the TP of 1.1500.
