Ichimoku analysis (4-hour chart)
Tenken-Sen- 1.10165
Kijun-Sen- 1.09921
EURUSD pared some of its gains on increased risk appetite. Fed officials Michelle Bowman said that inflation remains "far above" the target of 2%. The central bank should take action to tackle inflation. It hits an intraday low of 1.10245 and is currently trading around 1.10395.
Major economic data
Apr 25th, 2023 US CB consumer confidence (2 pm GMT).
US New Home Sales
Richmond Manufacturing Index
According to the CME Fed watch tool, the probability of a no-rate hike in May increased to 15.70% from 10.90% a week ago.
The US 10-year yield trades are weak for the second consecutive day on weak inflation and subdued economic data. The US 10 and 2-year spread narrowed to -60.7% 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 1.1070 confirms intraday bullishness; a jump to 1.110/1.1165 is possible. The near-term support is around 1.100. The breach below targets 1.0960/1.0930.
Indicator (4-hour chart)
CCI – Bullish
Directional movement index – neutral
It is good to buy on dips around 1.100 with SL around 1.0950 for a TP of 1.1100.
