FxWirePro- EURUSD Daily Outlook

Ichimoku analysis (4-hour chart)

 Tenken-Sen- 1.10259

 Kijun-Sen- 1.09532

EURUSD surged more than 50 pips after easing US wholesale prices.US PPI m/m came at-.0.50%  in Mar, below the estimate of 0.0%. The yearly inflation rose 2.70% last month, compared to a forecast of 3%. It hits a high of 1.10758 and is currently trading around 1.10594.

The number of people who have filed for unemployment benefits rose by 11000 in the week ending Apr 8 to 239000, the highest since Jan 2022.

Markets eye US retail sales and UoM consumer sentiment for further direction.

According to the CME Fed watch tool, the probability of a no-rate hike in May increased to 32.2% from 28.8% a week ago.

 The US 10-year yield trades flat despite weak US PPI. The US 10 and 2-year spread narrowed to -52% from -108%.

The pair trades above short-term 21 EMA, above 55 EMA, and long-term (200-EMA) in the 4-hour chart.  Any indicative break above 1.1075 confirms intraday bullishness, a jump to 1.110/1.1165  is possible. The near-term support is around 1.103. The breach below targets 1.100/1.0930/1.0900/1.0830.

 Indicator (4-hour chart)

  CCI –  Bullish

  Directional movement index – Bullish

It is good to buy on dips around 1.1000 with SL around 1.0950 for a TP of 1.1100/1.1165.