Ichimoku analysis (4-hour chart)
Tenken-Sen- 1.09267
Kijun-Sen- 1.08721
EURUSD showed a minor pullback after a minor sell-off. Euro gained momentum after hawkish 25 bpbs rate hike by ECB. The policy divergence between the US fed and ECB supports Euro at lower levels. It hits an intraday high of 1.09358 and is currently trading around 1.09356.
According to the CME Fed watch tool, the probability of a 25 bpbs rate hike in July increased to 74.40% from 59.90% a week ago.
The US 10-year yield consolidating in a narrow range for the past four days. The US 10 and 2-year spread widened to -94% 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 1.1000 confirms intraday bullishness; a jump to 1.107/1.1150 is possible. The near-term support is around 1.08800. The breach below targets 1.0828/1.0800.
Indicator (4-hour chart)
CCI – Bullish
Directional movement index – Bullish
It is good to buy on dips around 1.0900 with SL around 1.0860 for a TP of 1.100.
