FxWirePro: EUR/USD recovers sharply on cool US inflation data, good to sell on rallies
EURUSD is showing a major recovery of almost more than 125 pips after hitting new 2018 low of 1.8228. US CPI data came at 0.2% for the month of Apr compared to forecast of 0..3%. the slight decline in inflation has reduc…
EURUSD is showing a major recovery of almost more than 125 pips after hitting new 2018 low of 1.8228. US CPI data came at 0.2% for the month of Apr compared to forecast of 0..3%. the slight decline in inflation has reduced chance of drastic rate hike by US fed. US 10 year bond yield has decline more than 2% to 2.95. It is currently trading around 1.1945.
US dollar index has declined sharply after hitting high of 93.42 yesterday. Any convincing close below 92.50 will take the index till 91.95 (200 –day MA). Market eyes US CPI data which is to be released for further direction.
On the lower side, near term support stands at 1.1800 and any break below targets 1.17120 (38.2% fibo)/1.1600.
The near term resistance is around 1.1950 and any break above will take the pair to next level till 1.1970/1.200. The pair should close above 1.2020 for further upside.
It is good to sell on rallies around 1.1935-40 with SL around 1.2020 for the TP of 1.1800/1.1715.
