FxWirePro- EURUSD trades above 1.0900 on weak US NFP, good to sell on rallies

Ichimoku analysis (4-hour chart)

 Tenken-Sen- 1.08823

 Kijun-Sen- 1.08836

EURUSD showed a minor pullback on weak US jobs data. The US economy added 209000 jobs in June, the lowest since Dec 2020. The unemployment rate declined to 3.6% from 3.7%. Average hourly earnings jumped 0.40% m/m, above the forecast of 0.30%. It hits a low of 1.09313 at the time of writing and is currently trading around 1.09226.

According to the CME Fed watch tool, the probability of a 25 bpbs rate hike in July increased to 92.40% from 86.80% a week ago.

 The US 10-year yield trading higher despite weak US employment data. The US 10 and 2-year spread widened to -90% from -74%.

The pair trades below short-term 21 EMA,  above 55 EMA, and long-term (200-EMA) in the 4-hour chart.  Any indicative break above 1.0950 confirms intraday bullishness; a jump to 1.1000/1.1100 is possible. The near-term support is around 1.0880. The breach below targets 1.0830/1.0800.

   Indicator (4-hour chart)

   CCI – Bullish

  Directional movement index – Neutral

It is good to sell on rallies around 1.0928-30 with SL around 1.0970 for a TP of 1.0800.