Ichimoku analysis (4-hour chart)
Tenken-Sen- 1.07809
Kijun-Sen- 1.08349
EURUSD has been trading weak for the past one week on board-based US dollar buying.It hit a low of 1.07586 and is currently trading around 1.07628.
Major economic data for the day
Dec 7th, 2023, US initial jobless claims (1:30 pm GMT)
US private sector employment increased by 103000 jobs in Nov, below expectations of 131000. ECB expected to cut its rates rapidly due to weak Eurozone data.
According to the CME Fed watch tool, the probability of a no-rate hike in Dec increased to 97.50% from 97% a week ago.
The US 10-year yield trades weak amid weak US private sector employment. The US 10 and 2-year spread widened to -47.6% from -14.50%.
The pair trades below short-term 21 EMA, above 55 EMA, and long-term (200-EMA) in the 4-hour chart. Any break below 1.0760 confirms further bearishness.A decline to 1.0700/1.0660 is possible. The near-term resistance is around 1.0800 and any breach above targets is 1.0865/1.0900/1.0965. Bullish invalidation only if it breaks below 1.0440.
Indicator (4-hour chart)
CCI – bearish
Directional movement index – Bearish
It is good to sell on rallies around 1.0800 with SL around 1.0855 for a TP of 1.0700.
