Major resistance 1.1078-80
EURUSD is consolidating in a narrow range between 1.10846 and 1.10150 for past two trading session. US data released in the previous week was weak with ISM manufacturing below 50 and Non-farm payroll came at 130000 vs forecast of 163000, while average wage growth slightly above expectations. US Fed Chairman Powell was most optimistic about the US economy and repeated several times that the most likely outlook for the economy remains favorable and downplayed the chance of recession. The pair hits an intraday low of 1.10157 and is currently trading around 1.10463.
US 10 year bond yield is trading higher and spread between US bond 10-year and German bund yield have widened from 209 bps to 218 bps.
On the flip side, near term support is around 1.1000 and any violation will drag the pair to the next level till 1.0960/1.0925. Any major bearish continuation only below 1.09200.
The major level to be watched is 1.1080 (support turned into resistance) and any move above this will take the EURUSD to next level till 1.1100/1.11750-80.
It is good to buy on dips around 1.1032-350 with SL around 1.1000 for the TP of 1.1090
