Ichimoku analysis (4-hour chart)
Tenken-Sen- 1.08214
Kijun-Sen- 1.07230
EURUSD recovers more than 50 pips on board-based US dollar selling. It has lost its momentum after weak US economic data. It hits an intraday high of 1.09198 and is currently trading around 1.09189.
US ISM manufacturing slumped to a three-year low at 46.3 in Mar, compared to a forecast of 47.50.
According to the CME Fed watch tool, the probability of a 25 bpbs rate hike in May increased to 54.8% from 40.2% a week ago.
The pair trades above short-term 21 EMA, 55 EMA, and long-term (200-EMA) in the 4-hour chart. Any indicative break above 1.0930 confirms intraday bullishness, a jump to 1.100/1.1035 is possible. The near-term support is around 1.0870. The breach below targets 1.0830/1.0780.
Indicator (4-hour chart)
CCI – Bullish
Directional movement index – Bullish
It is good to buy on dips around 1.0850 with SL around 1.0800 for a TP of 1.0965.
