Ichimoku analysis (4-hour chart)
Tenken-Sen- 1.09618
Kijun-Sen- 1.09545
EURUSD showed a minor pullback after mixed European countries' PMI. The German services PM beats expectations while manufacturing PMI continues to shrink. In the Eurozone, the services PMI jumped to 56.60 from 55 but the services PMI dropped to 45.50, compared to a forecast of 47. It hits an intraday high of 1.09783 and is currently trading around 1.09751.
According to the CME Fed watch tool, the probability of a 25 bpbs rate hike in May increased to 82.10% from 78% a week ago.
The US 10-year yield pared its gains due to weak US economic data. The US 10 and 2-year spread narrowed to -60% from -108%.
The pair trades above short-term 21 EMA, 55 EMA, and long-term (200-EMA) in the 4-hour chart. Any indicative break above 1.100 confirms intraday bullishness; a jump to 1.110/1.1165 is possible. The near-term support is around 1.0930. The breach below targets 1.0900/1.0830.
Indicator (4-hour chart)
CCI – Bullish
Directional movement index – neutral
It is good to buy on dips around 1.0960 with SL around 1.0900 for a TP of 1.1100.
