EUR/USD: Sell on rallies | October 18, 2018

EURUSD 0.19% has pared most of its gains made this week. The pair hits high of 1.16212 on Oct 16th 2018 and declined more than 100 pips yesterday after Fed meeting minutes. It is currently trading around 1.14893.

The FOMC minutes has been interpreted as hawkish and it was very clear that Fed is to continue hike rates gradually despite recent criticism from President Trump. The 10 year US bond yield recovered more than 2% and jumped till 3.21%. The recent high made was 3.25%.

The rise Italian bond yield also putting pressure on Euro 0.19% . It has jumped more than 3% for the day and is trading around 3.63%. The high made was 3.63%.

Technically the pair has broken 1.1500 and declined till 1.14826 for the intraday. The low previously made was 1.14320 and any major weakness can be seen below 1.14300 and any break below 1.14300 targets 1.1380/1.1300.

The near term resistance is around 1.15350 (10- day MA) and any violation above targets 1.1560/1.1620. The minor bullishness above 1.16200.

It is good to sell on rallies around 1.1540 with SL around 1.1600 for the TP of 1.13050.