FxWirePro- EURUSD Daily Outlook
Ichimoku analysis (4-hour chart)
Tenken-Sen- 1.06547
Kijun-Sen- 1.06305
EURUSD showed a nice recovery of more than 130 pips on board-based US dollar selling. The back-to-back collapse of SVB and signature has decreased the chance of further rate hikes by the Fed. The weak US Nonfarm payroll also puts pressure on the US dollar at higher levels.EURUSD hits an intraday high of 1.06065 and is currently trading around 1.05912.
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 2-year yield declined drastically on Friday following the shutdown of SVB bank. The US 10 and 2-year spread narrowed to 71.4% 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 above 1.0760 confirms further bullishness, a jump to 1.0810/1.0850 is possible. The near-term support 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.
