Ichimoku analysis (4-hour chart)
Tenken-Sen- 1.10068
Kijun-Sen- 1.09351
EURUSD holds above 1.1000 ahead of US inflation.CPI is expected to have increased by 0.30% mom in June after a 0.10% jump in May. The yearly CPI was foreseen at 3.1% compared to 4% the previous month. It hits a high of 1.10368 and is currently trading around 1.10255.
German ZEW economic sentiment declined to -14.70 in Jul, compared to a forecast of -10.
According to the CME Fed watch tool, the probability of a 25 bpbs rate hike in July increased to 92.4% from 86.80% a week ago.
The US 10-year yield declined more than 3% ahead of the US CPI. The US 10 and 2-year spread narrowed to -90% from -110%.
The pair trades above short-term 21 EMA, 55 EMA, and long-term (200-EMA) in the 4-hour chart. Any indicative break above 1.1050 confirms intraday bullishness; a jump to 1.1100/1.1180 is possible. The near-term support is around 1.100. The breach below targets 1.0960/1.0900/1.0865/1.0830/1.0800.
Indicator (4-hour chart)
CCI – Bullish
Directional movement index – Bullish
It is good to buy on dip around 1.100 with SL around 1.0960 for a TP of 1.110.
