EUR/USD has pared most of its gains made yesterday on account of renewed trade tensions between US and China and broad based US dollar buying. US will impose 25% tariff on Chinese goods especially Industrial equipment like tractors and chemicals worth $16 billion from Aug 23.
US 10 year bond yield has recovered almost 2% from low of 2.9200 made on Aug 6th 2018. It is currently trading around 2.977%.
EUR/USD’s near term support is around 1.1500 and any convincing 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 1.1658 (20- day MA) and any break above will take the pair to next level till 1.1750/1.1800. The minor resistance is around 1.1600.
It is good to sell on rallies around 1.1585-590 with SL around 1.1645 for the TP of 1.1500/1.1400.
