FxWirePro- EURUSD Daily Outlook

Ichimoku analysis (4-hour chart)

 Tenken-Sen- 1.05956

 Kijun-Sen- 1.06379

EURUSD extending its bullish trend on easing market sentiment. The European Central bank has hiked rates by 50 basis points and said that it is ready to support banks if needed. Dovish Fed expectations and eleven of the biggest banks in the US announced a $30 billion rescue plan for  First republic bank to support Euro at lower levels. It hits an intraday high of 1.06699 and is currently trading around 1.06613.

The number of people who have claimed unemployment benefits declined BY 20000 to 192K for the week ending Mar 11, compared to a forecast of 205K. US Philly fed manufacturing index improved to -23.2 in Mar, slightly above the estimate of -14.5.

 According to the CME Fed watch tool, the probability of a 25 bpbs rate hike in Mar increased to 83.4% from 54.60% a day ago.

  The US 10-year yield pared some of its loss and surged more than 6.% from a minor bottom of 3.36%. Any break below 3.32% confirms further bearishness. The US 10 and 2-year spread narrowed to 61% from -107%.

Technical:

The pair trades above short-term 21 EMA, below 55 EMA, and long-term (200-EMA) in the 4-hour chart.  Any close above 1.06620 confirms further bullishness, a jump to 1.0700/1.07600  is possible. The near-term support is around 1.06350. The breach below will drag the pair to 1.05920/1.0550.

  Indicator (4-hour chart)

  CCI – Bullish

  Directional movement index – Bullish

It is good to buy on dips around 1.0600 with SL around 1.0550 for a TP of 1.0760.