On Thursday, Euro rushed high, followed by a drop. There is a clear resistance from above 1.1670. U.S. Treasury yields rose across the board on Thursday, with the benchmark 10-year U.S. Treasury yield rising above 1.70%. The U.S. index stopped falling and rebounded under the joint support of strong economic data and hawkish comments by Fed officials, which was the main reason pressurizing the weakening of Euro. However, the economic data released by the Eurozone performed well, limiting the room for the exchange rate to fall.
From a technical perspective, Euro’s daily candle closed bearish for the first time after 6 consecutive positives. This was because of the large scale profit taking happening in the market, which also shows that Euro is only rebounding. In H4 graph the candle forms a double-top pattern, falling back to below the middle BOLL band. Indicator is neutral but slightly bearish. Overall, prioritise operation within the fluctuation zone. Consider the support zone and resistance zone, the deciding point whether to buy or sell is near 1.1615.
Resistance：1.1650-1.1670-1.1700
Support：1.1615-1.1590-1.1560
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