Ichimoku analysis (4-hour chart)
Tenken-Sen- 1.09202
Kijun-Sen- 1.09033
EURUSD gained sharply after weak US PPI data. The Producer prices for the month dropped to 0.10% YoY, compared to a forecast of 0.40%. Core PPI m/m declined to 0.10% vs the forecast of 0.20%. It hits a high of 1.12417 and is currently trading around 1.12308.
According to the CME Fed watch tool, the probability of a 25 bpbs rate hike in July increased to 92.4% from 91.80% a week ago.
The US 10-year yield continues to trade weak after US inflation data. The US 10 and 2-year spread narrowed to -87% from -110%.
The pair trades above short-term 21 EMA, 55 EMA, and long-term (200-EMA) in the 4-hour chart. Any indicative break above 1.1250 confirms intraday bullishness; a jump to 1.1300/1.1380 is possible. The near-term support is around 1.1180 The breach below targets 1.1130/1.1070.
Indicator (4-hour chart)
CCI – Bullish
Directional movement index – Bullish
It is good to buy on dip around 1.1180 with SL around 1.1130 for a TP of 1.1300.
