Ichimoku analysis (Hour chart)
Tenken-Sen- 1.17535
Kijun-Sen- 1.17635
EURUSD continues to trade weak for the past eight days and lost more than 250 pips on broad-based US dollar buying. It hits a fresh four-month low on rising US bond yields. The US 10-year yield surged more than 7% from a low of 1.634% made yesterday. Markets eye US Biden infrastructure plans and Conference board consumer confidence for further direction. The slow vaccine rollout in European countries is also dragging the pair down.
DXY is holding above 93 levels after minor consolidation. A jump till 93.40/93.60 likely. EURUSD hits an intraday low of 1.17333 and is currently trading around 1.17411.
Technical:
The pair is facing strong support at 1.1700. Any break below confirms minor bearishness, a dip till 1.16600/1.1600 likely. The near-term resistance is around 1.1760. An indicative breach above will take the pair to next level till 1.1800/1.18451. Short-term trend reversal only above 1.2000.
Indicator (1 Hour chart)
CAM indicator –bearish
Directional movement index – bearish
It is good to sell on rallies around 1.1768-70 with SL around 1.1800 for the TP of 1.1600.
