Ichimoku analysis (4-hour chart)
Tenken-Sen- 1.09851
Kijun-Sen- 1.10163
EURUSD is trading well below 1.1000 ahead of US CPI data. The single currency pared most of the gains the previous month despite hawkish comments from ECB members. The European central bank governing council member Martin Kazkas said that the rate hike may not be finished in Jul. Peter Kazimir said on Tuesday that ECB needs to rise rates for longer than anticipated. The pair hits an intraday low of 1.09500 and currently trading around 1.09581.
According to the CME Fed watch tool, the probability of a no-rate hike in June decreased to 79.30% from 84.50% a day ago.
The US 10-year yield trades flat after a minor pullback. The US 10 and 2-year spread narrowed to -52.6% 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 1.0930. The breach below targets 1.0900/1.08300.
Indicator (4-hour chart)
CCI – Bearish
Directional movement index – Bearish
It is good to sell on rallies around 1.1000 with SL around 1.1045 for a TP of 1.0830.
