EURUSD pares most of its gains made yesterday and hits 2-week low on strong US dollar. The pair has lost nearly 200 pips yesterday and once again took support near 1.13000 level. It is currently trading around 1.13723.
With no major economic data from Euro zone market eyes US ISM PMI and ADP employment data which is to be released today and US NFP data for further direction.
US 10 year yield was trading lower and hits 11-month low and spread between Italy and German yield has reduced to 260 basis point from 330 basis point.
The major support is around 1.1300 and any violation below targets 1.12670/1.12100. The pair should break below 1.1200 for further weakness.
On the higher side near term resistance is around 1.1400 and any break above targets 1.1435/1.1475/1.1500. Any further bullishness only above 1.1500.
It is good to buy on dips around 1.1315-20 with SL around 1.1260 for the TP of 1.1490.
