Ichimoku analysis (4-hour chart)
Tenken-Sen- 1.10766
Kijun-Sen- 1.10837
EURUSD showed a minor pullback after a less hawkish rate hike by Fed. It hits an intraday low of 1.11338 and is currently trading around 1.11300.
US Fed hiked rates by 25 bpbs to 5.5% as expected. The central bank said that the economy is expanding at a moderate pace. Jobs gains have been robust in recent months, and the unemployment rate has remained low. Inflation remains elevated. The statement is like a carbon copy of June's with minor changes.
According to the CME Fed watch tool, the probability of a no-rate hike in Sep increased to 78% from 0% a day ago.
The US 10-year yield pared some of its gains after a less hawkish rate hike by the Fed. The US 10 and 2-year spread narrowed to -97% 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 1.11500 confirms intraday bullishness; a jump to 1.1180/1.1250/1.1300 is possible. The near-term support is around 1.1080. The breach below targets 1.1050/1.1000.
Indicator (4-hour chart)
CCI – Bearish
Directional movement index – Neutral
It is good to buy on dips around 1.10850 with SL around 1.1020 for a TP of 1.1200.
