EURUSD: Buy on dips : FxWirePro | December 29, 2017

EUR/USD 0.27% is trading high and set to close near to 1.200 in 2017. The pair jumped sharply from the low of 1.0340 made on Jan 2nd 2017 and jumped almost 16% from that level. The pair breaks trend line resistance at 1.19200 yesterday and is holding above that level. The main reason for decline in US dollar -0.33% is sharp selloff in US 10 year bond yields from high of 2.499% till 2.41%. US workers has filed 245000 initial jobless claims for the week that ended Dec 23rd compared to forecast of 240000. The claims remained well below thresh hold of 300000 for the 147th straight week longest stretch since 1970. The pair hits intraday high of 1.196530 and is currently trading around 1.19660.

The pair is facing trend line resistance at 1.19615 (Nov 27th 2017 high) and any break above that level will take the pair to next level to 1.200/1.2090.

On the lower side, any break below 1.1900 (20- 4H MA) will drag the pair to next level till 1.1850 (50 – 4H MA)/1.1800/1.1730. Any minor weakness can be seen only below 1.1700.

It is good to buy on dips around 1.1950-55 with SL around 1.1900 for the TP of 1.2090.