FxWirePro: EUR/USD trades higher amid rising US bond yields, good to buy on dips
EUR/USD is trading very flat for the past two trading session. The pair hits high of 1.24120 on Tuesday and pared some of its gains in the past two days. Euro was trading slightly positive amid good jump in US 10 year bo…
EUR/USD is trading very flat for the past two trading session. The pair hits high of 1.24120 on Tuesday and pared some of its gains in the past two days. Euro was trading slightly positive amid good jump in US 10 year bond yields. The yield difference between US 10 year bond and German yields is above 230 basis point highest level since late Dec 2016.During that time Euro declined to 14 year low. But higher risk due to Trump trade policies is preventing dollar to get strengthened. It is currently trading around 1.23712.
The pair is facing minor near term support is around 1.2335 and any break below will drag the pair down till 1.2320 (20- day MA)/1.2300/1.2260. Overall bearish continuation below 1.2165.
On the higher side, near term resistance is around 1.2400 and any convincing break above will take the pair to next level till 1.24450 (Mar 7th 2018 high)/1.2470.Major bullishness only above 1.2550.
It is good to buy on dips around 1.2355-60 with SL around 1.2315 for the TP of 1.2445/1.24700.
