Ichimoku analysis (4-hour chart)
Tenken-Sen- 1.10733
Kijun-Sen- 1.11034
EURUSD lost its shine after weak German IFO data. The Ifo Institute said that its business climate index dropped to 87.30 in July vs . 88 expected. It hits an intraday low of 1.10528 and is currently trading around 1.10610.
US July flash S&P manufacturing PMI slowed down to a five-month low at 49, compared to a forecast of 46.10.
Jul 25th, 2023
CB consumer confidence and Richmond manufacturing Index (2:00 pm GMT)
According to the CME Fed watch tool, the probability of a 25 bpbs rate hike in July increased to 98.90% from 98% a week ago.
The US 10-year yield trades flat ahead of US-fed monetary policy. The US 10 and 2-year spread narrowed to -97.80% from -110%.
The pair trades below short-term 21 EMA, 55 EMA, and above long-term (200-EMA) in the 4-hour chart. Any indicative break below 1.1050 confirms intraday bearishness; a decline to 1.1000/1.0950 is possible. The near-term resistance is around 1.1150. The breach above targets 1.1200/1.1275.
Indicator (4-hour chart)
CCI – Bearish
Directional movement index – Bearish
It is good to sell on rallies around 1.1100 with SL around 1.1150 for a TP of 1.1000.
