FxWirePro- EURUSD Daily Outlook

Ichimoku analysis (4-hour chart)

 Tenken-Sen- 1.08709

 Kijun-Sen- 1.08839

EURUSD lost its shine on hawkish FOMC meeting minutes. The minutes showed that all Fed officials agreed to rate pause at the June meeting and more rate hikes this year. It hits a low of 1.08338 at the time of writing and is currently trading around 1.8452.

Major economic data for the Day

Jul 6th, 2023, US ADP employment (12:15 pm GMT)

US ISM services PMI (2:00 pm GMT)

According to the CME Fed watch tool, the probability of a 25 bpbs rate hike in July increased to 88.70% from 81.80% a week ago.

 The US 10-year yield surged sharply after hawkish Fed meeting minutes. The US 10 and 2-year spread narrowed to -100% from -110%.

The pair trades below short-term 21 EMA,  55 EMA, and long-term (200-EMA) in the 4-hour chart.  Any indicative break above 1.0880 confirms intraday bullishness; a jump to 1.0950/1.1000/1.1100 is possible. The near-term support is around 1.0830. The breach below targets 1.0800/1.0760.

   Indicator (4-hour chart)

   CCI – Bearish

  Directional movement index – Bearish

It is good to sell on rallies around 1.0900 with SL  around 1.0950 for a TP of 1.0800.