Ichimoku analysis (4-hour chart)
Tenken-Sen- 1.06379
Kijun-Sen- 1.06379
EURUSD recovered well above the 1.0600 level on easing market tension. The Swiss National Bank has agreed to provide $54 billion to Credit Suisse to improve its liquidity. Market eyes the European Central bank monetary policy for further direction. It hits an intraday high of 1.0356 and is currently trading around 1.06248.
The US Producer price index fell 0.10% for Feb, below the estimate of 0.3%. US retail sales declined by 0.40% in Feb vs, the -0.30% expected.
According to the CME Fed watch tool, the probability of a no-rate hike in Mar increased to 33.6% from 0% a week ago.
The US 10-year yield pared some of its gains after a minor pullback. The US 10 and 2-year spread narrowed to 47% from -107%.
Technical:
The pair trades below short-term 21 EMA, below 55 EMA, and long-term (200-EMA) in the 4-hour chart. Any break above 1.0650 confirms further bullishness, a jump to 1.0700/1.07600 is possible. The near-term support is around 1.05920. The breach below will drag the pair to 1.0520/1.048.
Indicator (4-hour chart)
CCI – Bearish
Directional movement index – Neutral
It is good to sell on rallies around 1.06320-25 with SL around 1.0650 for a TP of 1.05325.
