FxWirePro: EURUSD hits 3-week low on upbeat US data, good to sell on rallies

Major support- 1.10650

EURUSD continues to trade weak for the past 3 trading days on upbeat US economic data. US housing starts surged sharply by 17% to 1.61 million compared to 1.375 million in Nov, the highest level in 13 years. The New York Fed and Philadelphia Fed rose better than expected. It hits an intraday low of 1.10823 and is currently trading around 1.10834.

German bund yield is trading higher for past 3-1/2 month high and spread between US 10-year and bund yield narrowed to 1.98 % points from 2.79 % points.

Technically, near term support is at 1.1065 and any violation below will drag the pair down till 1.100. Major bearishness only beneath 1.100 levels.

 The significant intraday resistance is around 1.1140, any indicative break beyond targets 1.1180/1.1245/1.12885. The decline from 1.14122 will get over at 1.08848 only if pair breaks 1.12850.

 It is good to sell on rallies around 1.1100 with SL around 1.1140 for the TP of 1.100.