Ichimoku analysis (4-hour chart)
Tenken-Sen- 1.05857
Kijun-Sen- 1.05697
EURUSD trades in a narrow range between 1.05230 and 1.06164 for the past three days. It hit a monthly high of 1.06396 and is currently trading around 1.05910.
The pair showed a minor pullback despite risk aversion and a surge in US treasury yield.
According to the CME Fed watch tool, the probability of a no-rate hike in Nov increased to 98.50% from 93.80% a week ago.
The US 10-year yield surged past 5% for the first time since July 20th, 2007 in hopes of a further rate hike. The US 10 and 2-year spread narrowed to -15% from -75%.
The pair trades above short-term 21 EMA, 55 EMA, and below long-term (200-EMA) in the 4-hour chart. Any break above 1.06400 confirms further bullishness. A jump to 1.0700/1.07600/1.0800 is possible. The near-term support is around 1.0550, and any breach below targets 1.04800/1.0440. Bullish invalidation only if it breaks below 1.0440.
Indicator (4-hour chart)
CCI – bullish
Directional movement index – Neutral
It is good to buy above 1.0620 with SL around 1.0570 for a TP of 1.07600.


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