Intraday trend – Bearish
Major intraday support– 1.0470
The pair declined once again after a minor pullback to 1.15770. Fed is expected to hike rates by 50 bpbs and will announce a plan for Quantitative tightening of the USD 9T balance sheet. According to the Fed watch tool, the probability for a 75 bpbs rate hike in June has increased to 96.9% from 74.5% a week ago. US 10-year yield spiked to 3% for the first time since 2018. The pair made a low of 1.04930 yesterday and is currently trading around 1.05135.
Technical-
Any breach below 1.04700 confirms a bearish continuation; a dip to 1.03400 is possible.
The immediate resistance to be watched is 1.0600; any violation above will take the pair to 1.0650/1.0700
Indicators (4-hour)
Directional movement index –Neutral
CCI (50) – Bearish
It is good to sell on rallies around 1.0548-50 with SL around 1.0610 for a TP of 1.0300.
