Intraday trend – Bullish
Intraday resistance- 1.0765
The pair formed a temporary bottom at 1.03450 and showed a nice pullback. Euro gained sharply on hopes of the first-rate hike by ECB in June. . According to the CME Fed watch tool, the probability of a 50 bpbs rate hike in Jul jumped to 89.4% from 86.2% a week ago. US 10-year yield re-gained above 2.75% after a minor dip to 2.70%. The pair made a low of 1.07330 at the time of writing and is currently trading around 1.07381.
The number of people who have filed for unemployment benefits dropped by 8000 to 21000 the previous week compared to a forecast of 217000. US economy shrank by 1.5% in Q1 vs -1.4% previous quarter.
Technical-
Any breach below 1.0700 confirms an intraday bearishness; a dip to 1.03400 is possible.
The immediate resistance to be watched is 1.0780; any violation above will take the pair to 1.0825/1.0875/1.0900.Indicators (4-hour)
Directional movement index –Bullish
CCI (50) – Bullish
It is good to buy on dips around 1.0720 with SL around 1.0660 for a TP of 1.0850.
