EURUSD formed almost a double bottom near 1.11800 and jumped more than 60 pips from the low of 1.11837 made yesterday. The recovery was due to US -China trade talks optimism and jump in US 10 year yield. US 10 year yield has recovered more than 7% from 14 month low of 2.34%. Markets eye US ISM non manufacturing and ADP jobs data for further direction.
The spread between US and German bund 10 year has widened from 240 basis point to 255 basis point which is supporting Euro.
On the higher side, near term resistance is around 1.1255 (55- 4 H EMA) and any violation above will take the pair to next level till 1.12680/1.1300/1.1322 (300-4 H EMA).
The near term major support is around 1.11700 and any break below targets 1.11500/1.100.
It is good to buy on dips around 1.1230-35 with SL around 1.1180 for the TP of 1.1320.
