FxWirePro- EURUSD Daily Outlook

Ichimoku analysis (4-hour chart)

Tenken-Sen- 1.09260

Kijun-Sen- 1.09174

EURUSD declined more than 100 pips after upbeat US jobs data. The US economy added 517000 jobs in Jan, much higher compared to a forecast of 185000. The unemployment rate came at 3.4% vs . Estimate of 3.6%.  Average hourly earnings year-over-year declined to 4.4%, below analyst forecast of 4.9%. It hits a low of 1.08250 at the time of writing and is currently trading around 1.08495.

 The US 10-year recovered more than 4% on positive jobs data. Any break and close above 3.60% confirm minor bullishness. The yield spread between 10 and 2-year narrowed to -72.40 basis points from -75 bpbs.

 Technical:

The pair is trading below short-term (21EMA, 55 EMA), and above long-term (200-EMA) in the 4-hour chart.  Any break below 1.0800 confirms intraday bearishness; a dip to 1.07600/1.0700 is possible. The near-term resistance is around 1.08850. The breach above will push the pair to 1.09450/1.1000.

Indicator (4-hour chart)

CCI – Bearish

Directional movement index – Bearish

It is good to buy on dips around 1.08250 with SL around 1.07800 for the TP of 1.0900/1.09500.