FxWirePro- EURUSD Daily Outlook

Ichimoku analysis (4-hour chart)

 Tenken-Sen- 1.06315

 Kijun-Sen- 1.06517

EURUSD showed a minor sell-off after hawkish FOMC meeting minutes. The minutes showed that "almost all participants agreed that "it was appropriate to raise the target range for the federal funds rate 25 basis points at this meeting." Some members also favored a 50 bpbs rate hike.  It hits a low of 1.06105 and is currently trading around 1.0615.

ECB's rate hike expectations rose sharply and economists predict 3.75% by Sep. Markets eye Eurozone CPI and US prelim GDP for further direction.

 According to the CME Fed watch tool, the probability of a 50 bpbs rate hike in Mar jumped to 24% from 12.2% a week ago.

 The US 10-year yield traded flat despite hawkish comments from Fed members. The US 10 and 2-year spread narrowed to -77 basis points from -88% bpbs.

Technical:

The pair is trading below short-term 21 EMA above  55 EMA, and long-term (200-EMA) in the 4-hour chart.  Any break below 1.0600 confirms intraday bearishness; a dip to 1.05000 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.