FxWirePro- EURUSD Daily Outlook

Ichimoku analysis (4-hour chart)

 Tenken-Sen- 1.09670

 Kijun-Sen- 1.09566

EURUSD breaks significant resistance of 1.1000 after the German IFO business climate. It improved to 93.6 in Apr, compared to an estimate of 93.40.  It hits an intraday low of 1.09659 and is currently trading around 1.09783. US Flash manufacturing PMI in Apr came at 53.70 in Apr came at 50.40, compared to a forecast of 49. Services PMI surged to 53.50 this month, the highest level since May.

According to the CME Fed watch tool, the probability of a 25 bpbs rate hike in May increased to 88.60% from 85.20% a week ago.

 The US 10-year yield showed a minor jump in hopes of a 25 bpbs rate hike. The US 10 and 2-year spread narrowed to -61.6% 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 1.0950 with SL around 1.0900 for a TP of 1.1100.