Ichimoku analysis (4-hour chart)
Tenken-Sen- 0.99735
Kijun-Sen- 1.00516
EURUSD declined sharply after breaking a multi-month low of 0.9950 today. The pair showed a minor pullback on upbeat German and EU PMI data. German flash manufacturing PMI Aug came at 49.80 vs 48.20. EU PMI jumped to 49.7 compared to an estimate of 48.9. Markets eye US Fed chairman speech at Jackson Hole symposium for further direction.
According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Sep rose to 58% from 45% a week ago.
EURUSD hits an intraday low of 0.98999 and is currently trading around 0.99331.
Technical:
On the higher side, near-term resistance is around 0.9960 and any convincing breach above will drag the pair to the next level of 1.000/1.0350/1.0500/1.075.
The pair's immediate support is at 0.9900, breaking below targets of 0.9860/0.9800.
Indicator (4-hour chart)
Directional movement index – Bearish
It is good to sell on rallies around 0.9958-60 with SL around 1 for a TP of 0.98050.
