Ichimoku analysis (4-hour chart)
Tenken-Sen- 1.06996
Kijun-Sen- 1.07070
EURUSD is trading in a narrow range between 1.07790 and 1.06350 for the past five days. The pair gained momentum after weak US ISM services PMI.e of its gains after US jobs data.US ISM services PMI came at 50.30 in May, below the estimate of 52.60. It hits a high of 1.07350 at the time of writing and is currently trading around 1.07112.
According to the CME Fed watch tool, the probability of a no-rate hike in June increased to 77% from 35.80% a week ago.
The US 10-year yield pared some of its gains on weak economic data. The US 10 and 2-year spread narrowed to -79.40% 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 – Neutral
Directional movement index – neutral
It is good to sell on rallies around 1.0758-60 with SL around 1.0800 for a TP of 1.0600.
