FxWirePro- EURUSD Daily Outlook

Ichimoku analysis (4-hour chart)

 Tenken-Sen- 1.07498

 Kijun-Sen- 1.07340

EURUSD  trades weak and showed a minor sell-off on surging US treasury yield. Hawkish comments from fed Chairman Powell and Fed speakers Willams and Barr putting pressure on Euro at higher levels. It hit a high of 1.07900 yesterday and is currently trading around 1.07400.  

Markets await University of Michigan consumer sentiment and FOMC member Waller's speech for further movement.

The number of people who have filed for unemployment benefits rose by 13000 in the previous week to 196000, compared to a forecast of 191000.

 According to the CME Fed watch tool, the probability of a 25 bpbs rate hike in Feb declined to 90.8% from 97.4% a week ago.

  The US 10-year yield showed a minor pullback after hitting a low of 3.57%. 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.