EURUSD trades lower and has broken 1.12421 low made yesterday.The pair was trading lower on account of declining US bond yield. US 10 year yield hits low of 2.340% fresh 14 -month low and trades below Fed funds rate . US 10 year and 3 month has inverted for first time since 2007. Markets eye US GDP and German CPI for further direction.
The yield curve inversion has increased the fear of recession which has improved demand of safe haven assets such as USD,Yen and Swiss Franc.
The near term support is around 1.12150 and any violation below will drag the pair till 1.11760. Any violation below 1.1170 will drag the pair till 1.1100.
The near term resistance is around 1.13000 and any convincing break above targets 1.13500/1.3380/1.1450 .It should break above 1.1450 for further direction.
It is good to sell on rallies around 1.1255-60 with SL around 1.1300 for the TP of 1.1150.
