EURUSD has shown a good recovery of more than 50 pips from low of 1.12753 made at the time of writing. The slight jump was mainly due to reports shows that ECB will not rush to cut rates in the Jul policy meeting. The pair jumps above 1.1300 on short covering. Yesterday US ISM manufacturing PMI came at 51.7 lowest level since 2016 compared to a forecast of 52. It hits an intraday high of 1.13220 and is currently trading around 1.13010.
US 10 year yield is trading flat and any major move only above 2.074% (20-day MA). The spread between US and German yield spread has widened from 226 basis point to 238 basis point.
On the flip side, near term support is around 1.1260 (100- day MA) and a dip till 1.12249/1.1200. Any major weakness only below 1.11800.
The near term major resistance is around 1.1355-60 and any convincing break above will take the pair to next level till 1.1420/1.1445.
It is good to sell on rallies around 1.1345-50 with SL around 1.1385 for the TP of 1.12249.
