Major support- 1.1000
EURUSD is trading lower and lost nearly 40 pips despite better than expected German ZEW sentiment. It came at -22.8 for Oct compared to an estimate of-27 points. The slight optimism in US-China trade talks and hopes of the Brexit deal is to support Euro at lower levels. The pair hits an intraday low of 1.10065 and is currently trading around 1.10171.
The US 10-year yield lost more than 5% from yesterday's high after a massive jump of more than 17%. The spread between US and German 10 year yield narrowed to 215 bps from 221 bps yesterday.
On the flip side, near term support is around 1.1000 and any violation below will drag the pair till 1.09500/1.0900.
The near term major resistance is around 1.10850 and any bullish continuation only above that level Any violation targets 1.1140/1.11780.
It is good to sell on rallies around 1.1040-45 with SL around 1.10850 for the TP of 1.0920.
