Ichimoku analysis (4-hour chart)
Tenken-Sen- 1.06407
Kijun-Sen- 1.06379
EURUSD showed a minor sell-off after three days of the bullish trend. The demand for the safe-haven US dollar increasing in global banking turmoil. Swiss banking giant Credit Suisse extends its sell-off and lost more than 50% in the pre-open market despite the UBS deal. Markets eyes update on banking crisis for further direction. It hits an intraday low of 1.06313 and is currently trading around 1.06495.
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 gains after a minor pullback. The US 10 and 2-year spread narrowed to 47% from -107%.
Technical:
The pair trades above short-term 21 EMA, 55 EMA, and long-term (200-EMA) in the 4-hour chart. Any close above 1.0700 confirms further bullishness, a jump to 1.0760/1.0800 is possible. The near-term support is around 1.0600. 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.
