Ichimoku analysis (4-hour chart)
Tenken-Sen- 1.08038
Kijun-Sen- 1.08481
EURUSD rebounded slightly after hitting a 13-week low yesterday. It hit a high of 1.08417 and is currently trading around 1.0800.
Fed Chairman Powell stated in a cautious tone that the Fed Reserve may need to raise rates to tackle inflation.
According to the CME Fed watch tool, the probability of a no-rate hike in Sep decreased to 80.50% from 89% a week ago.
The US 10-year yield showed a minor sell-off on less hawkish comments from Fed chairman Powell. The US 10 and 2-year spread widened to -84% from -66%.
The pair trades below short-term 21 EMA, 55 EMA, and long-term (200-EMA) in the 4-hour chart. Any indicative break below 1.0760 confirms further bearishness: a decline to 1.0700/1.0660 is possible. The near-term resistance is around 1.0850. The breach above targets 1.0935/1.0965/1.1000.
Indicator (4-hour chart)
CCI – bearish
Directional movement index – Neutral
It is good to sell on rallies around 1.0848-50 with SL around 1.0900 for a TP of 1.07660.
