FxWirePro- EURUSD Daily Outlook

Ichimoku analysis (4-hour chart)

 Tenken-Sen- 1.06462

 Kijun-Sen- 1.06697

EURUSD pared some of its gains ahead of US Fed monetary policy. Markets already pricing in a 25 bpbs rate hike. Any hawkish comments from Fed Chairman will drag the yellow metal further lower. German ZEW economic sentiment declines to 13 in Mar vs. the forecast of  16.40.  It hits an intraday high of 1.07219 and is currently trading around 1.07158.

US existing home sales surged 14.5% in Feb to a seasonally adjusted annual rate of 4.58 million, the largest monthly increase since Jul 2020.

According to the CME Fed watch tool, the probability of a  25 bpbs rate hike in Mar increased to 89.3% from 54% a week ago.

  The US 10-year yield recovered nearly 10% from a minor bottom of 3.29% ahead of US monetary policy. The US 10 and 2-year spread narrowed to 48% from -107%.

The pair trades above short-term 21 EMA, 55 EMA, and long-term (200-EMA) in the 4-hour chart.  Any close above 1.07600 confirms further bullishness, a jump to 1.0800/1.0880  is possible. The near-term support is around 1.0680. The breach below will drag the pair to 1.0650/1.0680.

  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.