Ichimoku analysis (4-hour chart)
Tenken-Sen- 1.07248
Kijun-Sen- 1.08046
EURUSD gained above 1.07500 despite hawkish Fed speakers. Fed speaker Willams delivered a hawkish outlook on monetary policy. He said that the central bank should continue to hike rates to bring inflation down. Markets await the Euro commission economic growth forecast for further movement. Any downward revision of Eurozone growth and inflation projection will drag the pair further down to 1.0700. It hits a low of 1.07093 and is currently trading around 1.073332.
The US 10-year yield showed a minor decline despite hawkish Fed speakers. Any break and close above 3.69% confirm minor bullishness. The yield spread between 10 and 2-year widened to -82 basis points from -72.40 bpbs.
Technical:
The pair is trading below short-term (21EMA, 55 EMA), and above long-term (200-EMA) in the 4-hour chart. Any break below 1.07000 confirms intraday bearishness; a dip to 1.0600/1.0350 is possible. The near-term resistance is around 1.0780. The breach above will push the pair to 1.08000/1.08850.
Indicator (4-hour chart)
CCI – Bearish
Directional movement index – Neutral
It is good to sell on rallies around 1.0760-65 with SL around 1.0810 for a TP of 1.06000.
