FxWirePro- EURUSD Daily Outlook

Ichimoku analysis (4-hour chart)

 Tenken-Sen- 1.06413

 Kijun-Sen- 1.06297

EURUSD showed a minor pullback ahead of the Fed chairman's congress testimony. Any dovish comments from Fed will push Euro higher to a fresh monthly high. The surge in Eurozone inflation has increased the chance of further rate hikes by the ECB.  EURUSD hits an intraday high of 1.06943 and is currently trading around 1.06906.

Euro retail sales came at  0.30% month-on-month in Jan, below the estimate of 0.70%.

According to the CME Fed watch tool, the probability of a 50 bpbs rate hike in Mar increased to 31.4% from 24% a week ago.

 The US 10-year yield showed a minor pullback ahead of Fed Chairman's Speech. The US 10 and 2-year spread widened to -92.70 basis points from -77% bpbs.

Technical:

The pair is trading above short-term 21 EMA, 55 EMA, and long-term (200-EMA) in the 4-hour chart.  Any break above 1.07000 confirms intraday bullishness, a jump to 1.07600/1.0800 is possible. The near-term support is around 1.0650. The breach below will drag the pair to 1.0600/1.0570.

  Indicator (4-hour chart)

  CCI – Bullish

  Directional movement index – Bullish

It is good to buy on dips around 1.0660 with SL around 1.0570 for a TP of 1.0800.