EURUSD trades lower after a minor jump from low of 1.12261 level. It hits high of 1.12618 yesterday and lost nearly 35 pips for the day. The strong US economic data such as retail sales and weak Markit PMI data form Germany is putting pressure on Euro. It hits low of 1.12172 and is currently trading around 1.12124.
The yield spread between US and German 10 year has widened sharply from 241 basis point to 259 basis point and 2 year yield spread widened nearly 30 basis point in past 4 weeks.
On the lower side near term support is around 1.1200 and any violation below will take the pair to net level till 1.11760. Any break below 1.11760 confirms major trend reversal and a dip till 1.11500/1.11000.
The major near term resistance is around 1.12620 and any violation above confirms minor bullishness and a jump till 1.13000/1.1345 level
It is good to sell on rallies around 1.1238-40 with SL around 1.12650 for the TP of 1.11760/1.1150.
