FxWirePro- EURUSD Daily Outlook

Ichimoku analysis (4-hour chart)

 Tenken-Sen- 1.08189

 Kijun-Sen- 1.07986

EURUSD jumped more than 50 pips after Fed monetary policy. Fed kept its rates unchanged at 5-5.25%. The central bank has projected the median federal funds rate from 5.1% to 5.6% (three more 25 bpbs rate hikes in 2023). For 2024 it increased from 4.3% to 4.6%. It hits an intraday high of  1.08303 and is currently trading around 1.08291.

Markets eye US retail sales and empire state manufacturing index for further direction.

 According to the CME Fed watch tool, the probability of a 25 bpbs rate hike in July increased to 71.9% from 50.9% a week ago.

 The US 10-year yield gained more than 4% after the Fed policy. The US 10 and 2-year spread widened to -91.7% from -35%.

The pair trades above short-term 21 EMA, 55 EMA, and below long-term (200-EMA) in the 4-hour chart.  Any indicative break above 1.0865 confirms intraday bullishness; a jump to 1.0900/1.0935/1.100 is possible. The near-term support is around 1.0760. The breach below targets 1.0720/1.0700.

   Indicator (4-hour chart)

   CCI – Bullish

  Directional movement index – neutral

It is good to buy on dips around 1.0800 with SL  around 1.0760 for a TP of 1.100.