US 10 year bond yield once again sparked till 2.85% after showing a minor decline till 2.74%. The reason for rise in yields is due to increase in and that will increase chance of rising interest rates by Fed.
Oil prices declined almost 2.5% yesterday and hits one month low on rising US crude stock piles. US crude production hits record high of 10.25 million barrels per day. The commodity hits low of $61.31 and is currently trading around $61.63.
On the higher side, major resistance is around 1.2600 and any break above will take the pair till 1.2660/1.2700.
The near term support is around 1.2535 (55- day ) and any break below will take the pair till 1.2500/1.2435.
It is good to buy on dips around 1.2575-80 with SL around 1.2535 for the TP of 1.2660/1.2700.