FxWirePro- EURUSD Daily Outlook

Ichimoku analysis (4-hour chart)

 Tenken-Sen- 1.06976

 Kijun-Sen- 1.07231

EURUSD showed a minor pullback ahead of US CPI data.  The annual CPI is expected to decline to 6.2%. Any drop in US inflation will drag the US dollar lower. The pair lost its shine after hawkish comments from Fed speakers. It hits a high of 1.07464 at the time of writing and is currently trading around 1.07351.  

 According to the CME Fed watch tool, the probability of a 25 bpbs rate hike in Feb declined to 90.8% from 96.70% a day ago.

  The US 10-year yield pared some of its gains ahead of US CPI data. Any break above 3.78% confirms minor bullishness. The yield spread between 10 and 2-year widened to -81.8 basis points from -46 bpbs.

Technical:

The pair is trading below short-term 21 EMA above  55 EMA, and long-term (200-EMA) in the 4-hour chart.  Any break below 1.07000 confirms intraday bearishness; a dip to 1.0600/1.0350 is possible. The near-term resistance is around 1.0780. The breach above will push the pair to 1.08000/1.08850.

 Indicator (4-hour chart)

 CCI – Bearish

 Directional movement index – Neutral

It is good to sell on rallies around 1.0760-65 with SL around 1.0810 for a TP of 1.06000.