FxWirePro- EURUSD Daily Outlook

Ichimoku analysis (4-hour chart)
 
 Tenken-Sen- 1.06853
 
 Kijun-Sen- 1.06968
 
EURUSD showed a minor pullback on strong market sentiment. The US  House of Representatives voted yesterday to raise the debt ceiling limit to avoid default. It hits a high of  1.07052 yesterday and is currently trading around 1.06656.

Major economic data for the day 

US ADP Non-farm employment change (12:15 pm)

US ISM manufacturing PMI (2 pm)
 
Germany's May Prelim CPI came at 6.1% y/y, compared to a forecast of 6.5%.

 According to the CME Fed watch tool, the probability of a 25 bpbs rate hike in June decreased to 61% from 33.40% a day ago.
 
 The US 10-year yield showed a 1.5% pullback ahead of the US Non-farm payroll. The US 10 and 2-year spread widened to -76% from -35%.

The pair trades below short-term 21 EMA, 55 EMA, and long-term (200-EMA) in the 4-hour chart.  Any indicative break below 1.0600 confirms intraday bearishness; a dip to 1.0570/1.0500 is possible. The near-term resistance is around 1.0720. The breach above targets 1.0765/1.0800/1.0865/1.0900.
 
   Indicator (4-hour chart)
 
   CCI – Bearish
 
  Directional movement index – Bearish
 
It is good to sell on rallies around 1.0700 with SL  around 1.0750 for a TP of 1.0600.