Ichimoku analysis (4-hour chart)
Tenken-Sen- 1.12298
Kijun-Sen- 1.12284
EURUSD jumped slightly above 1.1250 after consolidation. ECB policymaker Boštjan Vasle's hawkish commentary also supports Euro at lower levels. It hits a high of 1.12756 and is currently trading around 1.12487.
The US Empire State manufacturing index improved to 1.1 in July, compared to -3.5 the previous month.
Major economic data for the day
Jul 18th, 2023, Core Retail sales m/m (12:30 pm GMT)
According to the CME Fed watch tool, the probability of a 25 bpbs rate hike in July increased to 97.30% from 93% a week ago.
The US 10-year yield declined more than 8% in hopes of a rate pause by the Fed. The US 10 and 2-year spread narrowed to -92.40% 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 1.1280 confirms intraday bullishness; a jump to 1.1325/1.1380 is possible. The near-term support is around 1.1220. The breach below targets 1.1180/1.1130/1.1070.
Indicator (4-hour chart)
CCI – Bullish
Directional movement index – Bullish
It is good to buy on dips around 1.1180 with SL around 1.1130 for a TP of 1.1300.
