FxWirePro- EURUSD Daily Outlook

Ichimoku analysis (4-hour chart)

 Tenken-Sen- 1.08678

 Kijun-Sen- 1.09258

EURUSD showed a minor pullback after a massive sell-off the previous week.  US dollar gaining momentum on weak market sentiment. It hits a high of 1.08963 and is currently trading around 1.08936.

The US empire state manufacturing index fell 42.6 points to negative 31.80 numbers.

Market eyes German ZEW economic sentiment and US retail sales for further direction.

 According to the CME Fed watch tool, the probability of a 25 bpbs rate hike in June increased to 21.90% from 15.5% a week ago.

 The US 10-year yield trading in a narrow range ahead of US retail sales. The US 10 and 2-year spread narrowed to -50.5% from -108%.

The pair trades below short-term 21 EMA, 55 EMA, and long-term (200-EMA) in the 4-hour chart.  Any indicative break below 1.08600 confirms intraday bearishness; a dip to 1.0830/1.0800/1.0740 is possible. The near-term resistance is around 1.0900. The breach above targets 1.09300/1.1000.

  Indicator (4-hour chart)

   CCI – Bearish

  Directional movement index – neutral

It is good to sell on rallies around 1.0900 with SL  around 1.0960 for a TP of 1.0750.