Intraday trend – Bearish
Significant intraday support– 1.0400
The pair gained after forming a double bottom around 1.03585 levels. The policy divergence between ECB and Fed dragged the EURUSD further down. The US Dollar index pared its gains after weak US ISM manufacturing data. It has dropped to 53.1 in June vs a forecast of 54.90. The decline in US treasury yield for the four consecutive days pushed the pair slightly higher. It made a high of 1.044430 and is currently trading around 1.04315.
Technical-
Any breach below 1.0340 confirms a bearish continuation; a dip to 1.02500/1.0200 is possible.
The immediate resistance to be watched is 1.0460; any violation above will take the pair to 1.0520/1.0565/1.0620.
Indicators (4-hour)
Directional movement index –Neutral
CCI (50) – Bearish
It is good to sell on rallies around 1.0468-70 with SL around 1.05250 for a TP of 1.0300.
