- EURUSD continuing its weakness for 3rd consecutive day and broken major support 1.1800. the pair hits fresh 2018 low at 1.17950 at the time of writing. The pair weakness was mainly due to rising US 10 year bond yield. The yields hits fresh 4 year high at 3.09% yesterday. The new government formed in Italy by populist parties also supporting Euro selling. US retail sales data came slightly weaker than expected at 0.3% compared to forecast of 0.5%. It is currently trading around 1.17681.
- Markets eyes US building permits, Industrial production and Housing starts for further mild reaction.
- On the higher side, near term major intraday resistance is around 1.1865 (hourly Kijun-Sen) and any break above will take the pair to next level till 1.1909 (200- H MA)/1.1950. Short term bearish invalidation only above 1.2020 (200- day MA).
- The near term support is at 1.1800 and any convincing break below will drag the pair to next level till 1.1715/1.1660.
It is good to sell on rallies around 1.1855-60 with SL around 1.1910 for the TP of 1.1715.