Ichimoku analysis (4-hour chart)
Tenken-Sen- 1.06093
Kijun-Sen- 1.06093
EURUSD pared most of its gains and lost more than 150 pips on the hawkish Powell speech. It shows that Fed is likely to increase rates more than anticipated. Fed chairman said that the central bank is also "prepared to increase the pace of rate hike" EURUSD hits an intraday low of 1.05241 and is currently trading around 1.05428.
Market eyes on ECB President Speech and US ADP employment change for further direction.
According to the CME Fed watch tool, the probability of a 50 bpbs rate hike in Mar surged to 74.9% from 24% a week ago.
The US 10-year yield showed a minor pullback and holds above 4% after the hawkish Fed Chairman's Speech. The US 10 and 2-year spread widened to -107.2 basis points from -77% bpbs.
Technical:
The pair is trading below short-term 21 EMA, 55 EMA, and long-term (200-EMA) in the 4-hour chart. Any break below 1.0530 confirms further bearishness, a dip to 1.0480/1.0435 is possible. The near-term resistance is around 1.0570. The breach above will take the pair to 1.0600/1.0660.
Indicator (4-hour chart)
CCI – Bearish
Directional movement index – Bearish
It is good to sell on rallies around 1.0570 with SL around 1.0620 for a TP of 1.0450.
