Ichimoku analysis (4-hour chart)
Tenken-Sen- 1.09029
Kijun-Sen- 1.09282
EURUSD showed a minor pullback after a massive sell-off. The pair lost more than 150 pips shine after the hawkish Fed chairman's testimony. Markets eye German IFO business climate for further direction. It hits an intraday high of 1.09097 and is currently trading around 1.09093.
S&P US flash manufacturing PMI drops to 46.3 in June, and services PMI falls to 53.
According to the CME Fed watch tool, the probability of a 25 bpbs rate hike in July decreased to 71.9% from 74.40% a week ago.
The US 10-year yield trading flat between 3.849% and 3.69% for the past two weeks. The US 10 and 2-year spread widened to -100% from -35%.
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The pair trades below short-term 21 EMA, above 55 EMA, and long-term (200-EMA) in the 4-hour chart. Any indicative break above 1.09350 confirms intraday bullishness; a jump to 1.0965/1.1000 is possible. The near-term support is around 1.08500. The breach below targets 1.0828/1.0800/1.0760.
Indicator (4-hour chart)
CCI – Neutral
Directional movement index – Bullish
It is good to sell on rallies around 1.0918-20 with SL around 1.0965 for a TP of 1.070.
