EURUSD trades lower for 3rd consecutive day and is marching towards 1.11069 low made on May 23rd 2019. The main reasons US dollar strength was
US and Sino trade tension. Chinese media says that China has planned to cut exports of rare earth elements to US.
US 10 year bond yield is declining sharply to 2.21% lowest level since Dec 2017. German bund yield extended its free fall and hits lowest level since Jul 2016. The spread between US 10 year yield and German bund has narrowed to 238 basis point from 2558 basis point.
On the lower side, near term support is around 1.1100 level and any violation below will confirm bearish continuation, decline till 1.1020.
The near term resistance is around 1.1150 and any violation above will take the pair to next level till 1.11750/1.1200. It should break above 1.12650 for further bullishness.
It is good to sell on rallies around 1.1155-60 with SL around 1.1200 for the TP of 1.10250.
