EURUSD has broken 1.1000 level after ECB cuts deposit rates by 10 bps and announced QE of 20 billion euros with effective from Nov 1. The central bank has introduced a two-tier system for negative rate policy. The pair hits low of 1.09551 and is currently trading around 1.09626.
US 10-year yield lost more than 4% from the high of 1.749% and spread has slightly narrowed to 3 bps from 5 bps.
On the flip side, major support is around 1.09250 and any violation below targets 1.0880/1.0850.
The near term resistance is around 1.100 and any break above will take the pair till 1.1030/1.1070. Bullish trend continuation only above 1.10850.
It is good to sell on rallies around 1.0978-80 with SL around 1.1030 for the TP of 1.0855.
