FxWirePro- EURUSD Daily Outlook

Ichimoku analysis (4-hour chart)

 Tenken-Sen- 1.07346

 Kijun-Sen- 1.07070

EURUSD pared some of its gains after US jobs data. The non-farm payroll rose to 339000 in May, above the forecast of 190000. The unemployment rate rose to 3.7% vs an estimate of 3.5%. It hits a high of  1.06833 at the time of writing and is currently trading around 1.06928.

Major economic data for the day

US ISM services PMI (2 pm)

According to the CME Fed watch tool, the probability of a 25 bpbs rate hike in June increased to  63% from 36.40% a week ago.

 The US 10-year yield pared some of its gains due to profit booking. The US 10 and 2-year spread narrowed to -81.20% 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 1.0660 confirms intraday bearishness; a dip to 1.0600/1.0570/1.0500 is possible. The near-term resistance is around 1.0720. The breach above targets 1.0780/1.0800/1.0865/1.0900.

   Indicator (4-hour chart)

   CCI – Bearish

  Directional movement index – Bearish

It is good to sell on rallies around 1.0758-60 with SL  around 1.0800 for a TP of 1.0600.