- EUR/USD continuing its weakness for 4th consecutive day and hits low of 1.17631 yesterday. The pair pared some of its losses yesterday and jumped till 1.18375.The pair weakness was mainly due to rising US 10 year bond yield and political uncertainty in Italy. The yields hits fresh 7 year high at 3.10% yesterday. The leaders of Italy’s two political party M5S and League agreed to contract for a government of change. US industrial production cam slightly better than expected yesterday. While US housing starts and building permits fell sharply in Apr. It is currently trading around 1.18057.
- Markets eyes US initial jobless claim, Philly fed Manufacturing index for further direction.
- On the higher side, near term major intraday resistance is around 1.1885 (4-hour Kijun-Sen) and any break above will take the pair to next level till 1.1910 (55- 4H EMA)/1.1950. Short term bearish invalidation only above 1.2020 (200- day MA).
- The near term support is at 1.1750 and any convincing break below will drag the pair to next level till 1.1715/1.1660.
It is good to sell on rallies around 1.1855-60 with SL around 1.1910 for the TP of 1.1715.
