Ichimoku analysis (4-hour chart)
Tenken-Sen- 1.08599
Kijun-Sen- 1.07806
EURUSD pared most of its gains on board-based US dollar buying. The pair gained sharply after the dovish rate hike by Fed. It hits an intraday low of 1.07728 and is currently trading around 1.07850.
The number of people who have filed for unemployment benefits for the week ended Mar 18th dropped by 1000 to 191000.
According to the CME Fed watch tool, the probability of a no-rate hike in Mar increased to 68.3% from 54% a week ago.
The US 10-year yield pared most of its gains in the fed rate cut hopes. The US 10 and 2-year spread widened to 41.4 from -62%.
The pair trades above short-term 21 EMA, 55 EMA, and long-term (200-EMA) in the 4-hour chart. Any close below 1.0 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 – Neutral
It is good to buy on dips around 1.0600 with SL around 1.0550 for a TP of 1.0760.
