Major resistance- 1.1100
EURUSD continues to trade weak for 2nd consecutive day. The pair's overall bias is still feeble despite strong German IFO data. It grew to 95 in Nov slightly higher than the Oct month 94.6, current economic assessment at 97.9 vs 97.8. It hits an intraday low of 1.10102 and is currently trading around 1.10152.
The German bund yield has halted its 1-1/2 month uptrend, shown a minor decline of 17 bps. The spread between US and German yield has narrowed to 214 bps from 222 bps.
Technically near term major resistance is around 1.1050, violation over will take the pair to next level till 1.1100. Major bullish continuation only beyond 1.1180.
On the flip side, minor support is around 1.10989, any indicative break beneath will drag the pair underneath till 1.095/1.0880. Major bearishness only below 1.0880 level.
It is good to sell on rallies around 1.10325-35 with SL around 1.1070 for the TP of 1.0935.
