Ichimoku analysis (4-hour chart)
Tenken-Sen- 1.04417
Kijun-Sen- 1.04732
EURUSD pared some of its gains made today. The pair gained to 1.04195 after improved Eurozone industrial production. It has contracted by -1.8% compared to a forecast of -2.1%. The policy divergence between ECB and Fed is dragging Euro lower. The pair declined to 1.03535, the lowest level since Jan 2017. US Producer price cools off to 11% in Apr over the past year compared to a previous month of 11.5% on declining crude oil prices. Markets eye the US consumer confidence report for further direction. EURUSD hits an intraday low of 1.03730 and is currently trading around 1.03871.
Technical:
On the higher side, near-term resistance is around 1.04200 and any convincing breach above will drag the pair to the next level of 1.4600/1.0500.
The pair's immediate support is at 1.0340, breaking below targets of 1.0300/1.0200.
Indicator (4-hour chart)
Directional movement index – bearish
It is good to sell on rallies around 1.04500 with SL around 1.0500 for a TP of 1.0300.
