Ichimoku analysis (Hourly chart)
Tenken-Sen- 1.22369
Kijun-Sen- 1.22187
EURUSD continues to trade higher for second consecutive days and surged more than 100 pips on broad-based US S dollar selling. The German IFO data came at 99.2 in May highest in two years, compared to a forecast of 98.20. The slight dovish comment by Fed member Lael Brainard is also putting pressure on the US dollar.DXY is trading well below 90 levels; any breach below 89.20 confirms major trend continuation. EURUSD hits an intraday high of 1.22619 and is currently trading around 1.22576.
Technical:
On the higher side, near-term resistance is around 1.2260, and any convincing breach above will take the pair to next level 1.2300/1.2400. The pair's near-term support is around 1.2200, violation below that level targets 1.2150/1.2040 (100- day MA)/1.1980. The pair is holding above 200-H MA and trend reversal can happen if it closes below that level.
Indicator (Hourly chart)
CAM indicator –Bullish
Directional movement index –Bullish
It is good to buy on dips around 1.2230-325 with SL around 1.2180 for the TP of 1.2340.
