FxWirePro-EURUSD Daily Outlook

Ichimoku analysis (4-hour chart)

 Tenken-Sen- 1.05680

 Kijun-Sen- 1.06093

EURUSD showed a minor pullback ahead of the US Nonfarm payroll. Economists have anticipated declining to 224000 in Feb from 517000 in January. The unemployment rate is expected to increase to 5.1% from 5% in Feb.  The minor sell-off in US treasury yields also supported the pair at lower levels. EURUSD hits an intraday high of 1.06065 and is currently trading around 1.05912.

The number of people who have filed for unemployment benefits rose to 211K for the week ended Mar 14th, compared to a forecast of 195K.

According to the CME Fed watch tool, the probability of a 50 bpbs rate hike in Mar declined to 63.1 from 78.6% a day ago.

 The US 10-year yield lost more than 6.5% from a minor top of 4.08%. The US 10 and 2-year spread narrowed to 95.3% from -107%.

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 below 1.0530 confirms further bearishness, a dip to 1.0480/1.0435 is possible. The near-term resistance is around 1.0625. The breach above will take the pair to 1.0660/1.0700.

  Indicator (4-hour chart)

  CCI – Bearish

  Directional movement index – Bearish

It is good to sell on rallies around 1.0600 with SL around 1.0660 for a TP of 1.0450.