Ichimoku analysis (Daily chart)
Tenken-Sen- 1.21136
Kijun-Sen- 1.20554
EURUSD continues to trade higher for fourth consecutive days and jumped more than 150 pips. The upbeat market sentiment and dovish Fed members are dragging the US dollar index down. DXY is trading well below 90 levels; a retest of the previous low 89.20 is possible. Markets eye US FOMC meeting minutes today for further direction. The minor pullback in US bond yields is supporting the US dollar at lower levels. The US 10- year bond yield jumped more than 1% from an intraday low of 1.63%. EURUSD hits an intraday high of 1.22454 and is currently trading around 1.22139.
Technical:
On the higher side, near-term resistance is around 1.2260, and any breach above will take the pair to next level 1.2300/1.2400. The pair's near-term support is around 1.2180, violation below that level targets 1.2150/1.2100/1.2045 (100- day MA)/1.1980. The pair is holding above 100-day MA and trend reversal can happen if it closes below that level.
Indicator (Daily chart)
CAM indicator –Bullish
Directional movement index –Bullish
It is good to buy on dips around 1.2180 with SL around 1.2120 for the TP of 1.2300.
