Ichimoku analysis (4-hour chart)
Tenken-Sen- 1.06823
Kijun-Sen- 1.06786
EURUSD showed a minor sell-off on risk aversion. Markets eye Euro and German flash services Manufacturing PMI, German ZEW sentiment for further movement. Any upbeat ZEW sentiment will push Euro higher above 1.0700. Euro was one of the worst performers this month due to hawkish comments from fed officials. It hits a low of 1.0660 at the time of writing and is currently trading around 1.06699.
According to the CME Fed watch tool, the probability of a 50 bpbs rate hike in Mar jumped to 18.10% from 9.2% a week ago.
The US 10-year yield trades flat after hitting a multi-week high. The US 10 and 2-year spread narrowed to -80 basis points from -88% bpbs.
Technical:
The pair is trading above short-term 21 EMA, below 55 EMA, and long-term (200-EMA) in the 4-hour chart. Any break above 1.07350 confirms intraday bullishness; a jump to 1.0760/1.0800 is possible. The near-term support is around 1.0660. The breach below will drag the pair to 1.0600/1.0525.
Indicator (4-hour chart)
CCI – Bearish
Directional movement index – Neutral
It is good to sell on rallies around 1.0738-40 with SL around 1.0800 for a TP of 1.06000.
