FxWirePro- EURUSD Daily Outlook

Ichimoku analysis (4-hour chart)

 Tenken-Sen- 1.08413

 Kijun-Sen- 1.08728

EURUSD lost its shine and lost nearly 100 pips in the past two days on board-based US dollar buying. US debt ceiling negotiations and hawkish Fed bets putting pressure on Euro at higher levels.  It hits an intraday low of 1.08090 and is currently trading around 1.08189.

US President Biden and top congressional Republican Kevin McCarthy are hopeful of a deal on the $31.40 trillion federal debt ceiling soon.

According to the CME Fed watch tool, the probability of a 25 bpbs rate hike in June increased to 29% from 0.40% a week ago.

 The US 10-year yield showed a minor jump in hopes of a 25 bpbs rate hike by the Fed. The US 10 and 2-year spread narrowed to -58.80 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 1.0800 confirms intraday bearishness; a dip to 1.0740/1.0700 is possible. The near-term resistance is around 1.0850. The breach above targets 1.0900/1.09300/1.1000.

  Indicator (4-hour chart)

   CCI – Bearish

  Directional movement index – Bearish

It is good to sell on rallies around 1.0868-70 with SL  around 1.0920 for a TP of 1.0750.