Intraday trend – Neutral
Major intraday Support– 1.11800
The pair is trading below 1.13000 levels on strong US treasury yields. The policy divergence between the US fed and ECB is dragging the Euro lower. The US fed expected to taper bond buying sooner rather than later due to surging inflation is supporting the US dollar. The US dollar index trades above 96, a breach above 97 confirms a bullish continuation. Markets eye German ZEW sentiment for further direction. It hits an intraday low of 1.12534 and is currently trading around 1.12624.
Any breach below 1.12300 confirms intraday bearishness. A dip till 1.1180/1.1130/1.0860 is possible.
The immediate resistance to be watched is 1.1300; any violation above will take the pair to 1.1375/1.1435.
Indicators (4-hour)
Directional movement index –Neutral
CCI (50) - Bullish
It is good to sell on rallies around 1.1328-30 with SL around 1.13750 for a TP of 1.1180.
