Ichimoku analysis (1-hour chart)
Tenken-Sen- 1.12952
Kijun-Sen- 1.13217
EURUSD declined sharply and hits 16- month lows at 1.12640. The upbeat US economic data and surge in US inflation have increased the chances of a rate hike by the Fed. The policy divergence between US Fed and ECB is supporting the US dollar. US retail sales rose 1.7% in Oct compared to the forecast of 1.4%. EURUSD hits an intraday high of 1.13210 and is currently trading around 1.13122.
Technical:
On the higher side, near-term resistance is around 1.13625 and any convincing breach above will drag the pair to the next level 1.1400/1.14590/1.14845. The pair's immediate support is at 1.1250, breaking below targets of 1.1200/1.1160.
Indicator (4-hour chart)
Directional movement index – Bearish
It is good to sell on rallies around 1.1368-70 with SL around 1.1435 for a TP of 1.1250.
