Ichimoku analysis (4-hour chart)
Tenken-Sen- 1.10192
Kijun-Sen- 1.10294
EURUSD pared most of its gains made yesterday on a cautious market mood. Markets eye Fed speaker Williams's speech for further direction. ECB Chief Economists comment about inflation also putting pressure on the Euro at a higher level. He said that "There's still a lot of momentum in inflation, but later this year and ongoing a lot of this inflation is supposed to reverse, partly because of the reversal of the underlying shocks, partly because of monetary policy." The pair hits an intraday low of 1.09725 and currently trading around 1.09760.
According to the CME Fed watch tool, the probability of a no-rate hike in June increased to 86.90% from 64.6% a week ago.
The US 10-year yield gained more than 6% from the minor bottom of 3.298%. The US 10 and 2-year spread narrowed to -48% from -108%.
The pair trades below short-term 21 EMA, 55 EMA, and above long-term (200-EMA) in the 4-hour chart. Any indicative break above 1.100 confirms intraday bullishness; a jump to 1.1070/1.1100 is possible. The near-term support is around 1.0960. The breach below targets 1.0930/1.0900/1.08300.
Indicator (4-hour chart)
CCI – Bearish
Directional movement index – Bearish
It is good to buy on dips around 1.0960 with SL around 1.0900 for a TP of 1.1100.


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