EURUSD trades higher for 3rd consecutive day and jumped more than 130 pips on account of declining US yield. US 10 year yield is trading lower and hits fresh 21-month low at 2.05%. The yield curve inverted which signals recession. The spread between 3 month yield and 10 year yield has widened from 10 basis point to 25 basis point. US ISM manufacturing came at 52.1 less than forecast of 53 lowest level in 31 months. The pair hits high of 1.12620 and is currently trading around 1.12538.
The near term resistance is around 1.12620-650 and any break above will take the pair till 1.1300/1.13237.
On the lower side, near term support is around 1.1220 and any violation below targets 1.11750/1.1150. Any major trend reversal only below 1.1100.
It is good to buy on dips around 1.12200 with SL around 1.11900 for the TP of 1.1300/1.13230.
