EURUSD has lost more than 70 pips from high of 1.13479 amid weaker than expected US CPI data. US annual inflation came at 1.8% compared to forecast of 2.0%. But slight sstrength in US dollar was mainly due to
- US-China renewed trade tensions and trump also threatened to slam additional tariffs for $300 billion worth Chinese goods if Chinese President Xi does not attend G-20 summit.
- Trump also threatened to sanction Germany if Merkel continues to support Russia Nord 2 stream pipe line.
US 10 year yield down more than 3.5% after US CPI data and spread between US 01 year and 3 months has declined to 10 basis point from 2 basis point.
Technically, near term major support is around 1.1270 (100-day MA) and any convincing break below targets 1.1215/1.11750.
The near term resistance is around 1.13600 (200-day MA) and any indicative break above will take the pair higher till 1.1420/1.1450.
It is good to buy on dips around 1.1265-70 with SL around 1.1215 for the TP of 1.1420.
