Ichimoku analysis (60 min chart)
Tenken-Sen- 1.21461
Kijun-Sen- 1.213261
EURUSD is holding above 1.2150 on broad-based US dollar selling. The reflation due to extended fiscal stimulus is putting pressure on safe-haven assets like the US dollar. The upside in EURUSD might be capped due to rising US bond yields. It hits a fresh year high at 1.435% and holding above 1.40%. DXY is trading weak, any violation below 89.90 confirms further weakness. US new home sales surged sharply and hits 3 months high. It came at a 923000 annualized pace in Jan compared to a forecast of 856000. EURUSD hits an Intraday high of 1.21829 and is currently trading around 1.21793.
Technical:
The pair is facing strong support at 1.21150. Any break below confirms minor bearishness, a jump till 1.2090/1.2060/1.2020 likely. The near-term resistance is around 1.2180. Breach below will drag the pair up till 1.2200/1.2260.
Indicator (60 min chart)
CAM indicator – bullish
Directional movement index – bullish
It is good to buy on dips around 1.2150 with SL around 1.2100 for the TP of 1.2260.
