Ichimoku analysis (4-hour chart)
Tenken-Sen- 1.08846
Kijun-Sen- 1.09059
EURUSD trading in a tight range between 1.09722 and 1.08350 for the past five days. The pair showed a minor pullback after weak US ISM manufacturing PMI. Markets are expected to trade quietly ahead of US independence day. It hits a high of 1.09339 and is currently trading around 1.08982.
According to the CME Fed watch tool, the probability of a 25 bpbs rate hike in July increased to 87.40% from 76.90% a week ago.
The US 10-year yield pared some gains on weak US ISM manufacturing PMI. The US 10 and 2-year spread widened to -108.50% from -94.8%.
The pair trades above short-term 21 EMA, 55 EMA, and long-term (200-EMA) in the 4-hour chart. Any indicative break above 1.0945 confirms intraday bullishness; a jump to 1.1000/1.1100 is possible. The near-term support is around 1.0900. The breach below targets 1.0865/1.0800.
Indicator (4-hour chart)
CCI – Bullish
Directional movement index – Bullish
It is good to buy on dips around 1.0860 with SL around 1.0820 for a TP of 1.100/1.1090.
