Buy on dips ” by trader FxWirePro — published December 07, 2018 — TradingView

EURUSD has once again pared gains after showing a jump above 1.1400 level. It hits high of
1.14126 and is currently trading around 1.13633.

The major factor which affects EURUSD price are

US bond yield: The US 10 year bond yield declined sharply yesterday and hits low of 2.81%. It has shown a minor recovery till 2.90% but trading below 200-day MA. It is currently trading around 2.878%. US 2year yield is around 2.75% and 5- year yield around 2.74%. Short term yield (2- year) above 5- year and yield curve inverted (negative for US Dollar )

German and Italy bond yield: The Italian 10 year bond yield has shown a jump of 8% from low of 3%. German bund yield jumped more than 15% from yesterday’s low and spread has increased to 300 basis point from 270 basis point (sightly negative for Euro ).

Major economic event for the day is US Non Farm Payroll. US economy is expected to add 198000 jobs in the month of Nov compared to 250k in Oct ,unemployment rate at 3.7% and weekly earnings are expected to be stable at 0.3%m/m,3.1% Y/Y.Any major surprise will have major impact on EURUSD .

On the higher side, near term resistance is around 1.13600 level and any violation above targets 1.1402/1.1435/1.1475. The pair should break above 1.1500 for further direction.

The near term support is around 1.1300 and any break below targets 1.1200. Any violation below 1.1200 confirms bearish continuation.

It is good to buy on dips around 1.1358-60 with SL around 1.13000 for the TP of 1.1500.

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