Ichimoku analysis (4 Hour chart)
Tenken-Sen- 1.18765
Kijun-Sen- 1.19005
EURUSD is trading weak for the second consecutive day and lost more than 100 pips on broad-based US dollar buying. The upbeat US economy and Joe Biden's new $3 trillion packages to boost the economy are supporting the US dollar. The extension of lockdown in Germany, Netherlands and low vaccine rollout in European countries is dragging Euro down. But upbeat Eurozone and German flash PMI is preventing the EURUSD to go below 1.18000. Market eyes US Treasury Secretary Janet Yellen's testimony to Congress today for further direction.
DXY has broken 92.50 high made on Mar 9th. It should hold above 92.63 (200-day MA) for further jump till 93/93.40. EURUSD hits an intraday low of 1.18122 and is currently trading around 1.18299.
Technical:
The pair is facing strong support at 1.1800. Any break below confirms minor bearishness, a dip till 1.1780/1.174500/1.1700 likely. The near-term resistance is around 1.1880. An indicative breach above will take the pair to next level till 1.1950/1.2000/ 1.2020 (200- 4H MA)/1.20653. Short-term trend reversal only above 1.2260.
Indicator (4 Hour chart)
CAM indicator –bearish
Directional movement index – bearish
It is good to sell on rallies around 1.18725-50 with SL around 1.1925 for the TP of 1.17450.
