Ichimoku analysis (4-hour chart)
Tenken-Sen- 0.99740
Kijun-Sen- 1.000
EURUSD gained above 1.000 after hitting a multi-year low of 0.99165. European Central Bank Chief economist Philip Lane said on Tuesday that "interest rates should be raised step by step". Markets eye US Conference Board consumer confidence for further direction.
US 10-year yield rose by 25% from a minor bottom of 2.518%. The spread between German and Italian yields was close to 2.30%.
According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Sep rose to 70.5% from 55% a week ago.
EURUSD hits an intraday high of 1.00547 and is currently trading around 1.00352.
Technical:
On the higher side, near-term resistance is around 1.0150 and any convincing breach above will drag the pair to the next level of 1.0350/1.0500/1.075.
The pair's immediate support is at 0.9900, breaking below targets of 0.9860/0.9800.
Indicator (4-hour chart)
Directional movement index – Bullish
It is good to buy on dips around 0.9978-80 with SL around 0.9948 for a TP of 1.0650.
