Ichimoku analysis (1 Hour chart)
Tenken-Sen- 1.18878
Kijun-Sen- 1.18263
EURUSD skyrocketed more than 100 pips in the past two days. The dovish Fed meeting minutes and slight weakness in US bond yield are putting pressure on the US dollar. The FOMC meeting minutes confirm that the Fed will continue its accommodative policy stance until inflation and employment targets are achieved. The slight pessimism in the AstraZeneca vaccine and extension of lockdown in Germany is weighing on Euro. Markets eye US Initial jobless claims for further movement.
DXY recovered slightly from a low of 92.13. Significant bearishness only if it breaks below 91.80. EURUSD hits an intraday high of 1.19147 and is currently trading around 1.18892.
Technical:
The pair is facing strong support at 1.18480. Any break below confirms minor bearishness, a dip till 1.1800/1.1770 likely. The near-term resistance is around 1.1950. An indicative breach above will take the pair to next level till 1.2000/1.2048. Short-term trend reversal only above 1.2000.
Indicator (4 Hour chart)
CAM indicator –Bearish
Directional movement index – Bullish
It is good to buy on dips around 1.18500 with SL around 1.18000 for the TP of 1.2000.
