- EUR/USD continuing its losing streak and broken the support of 1.16965 made on Oct 3rd 2017 on account of strong US economic data and dovish ECB meeting minutes. It has declined till 1.16860 and is currently trading around 1.16940.
- Overnight US dollar gained strongly and once again reached one and half month high on account of upbeat economic data. US jobless claim data released yesterday shows that claims fell more than expected to 260k compared to 272k previous week.
- ECB minutes meeting shows a slightly dovish statement on QE tapering. The central bank lays foundation for QE tapering but also concerned about currency Euro and inflation. The policy divergence between Fed and ECB dragging the pair down to lower levels.
- Technically the pair has formed lower highs and higher low pattern. It is also trading slightly below 200- W MA at 1.1719 and any weekly close below will drag the pair down till 1.16621 (Aug 2017 low). Any break below 1.16625 confirms major weakness, a decline till 1.15920 (20- W MA)/1.1500.
- On the higher side, nearby resistance is around 1.1720 and any break above will take the pair to next level till 1.17650/1.17890. Minor bullishness can be seen only above 1.18350.
- In the 4 hours chart, the pair is trading in side a channel and also formed bullish divergence.
It is good to sell on rallies around 1.1765-1.1770 with SL around 1.1835 for the TP of 1.1660/1.15920