Ichimoku analysis (4-hour chart)
Tenken-Sen- 1.06678
Kijun-Sen- 1.06676
EURUSD trades in a narrow range ahead of US Fed FOMC meeting minutes. Any hawkish comments will drag the pair further lower. It hits a low of 1.06435 yesterday and is currently trading around 1.06528.
German ZEW economic sentiment improved to 28.10 in Feb vs. the Forecast of 22.
US flash services PMI surged to 50.2 in Feb, the highest level in 8 months, up from 46.8 in Jan.
US Flash manufacturing PMI came at 47.8 in Feb, slightly above the estimate of 47.40.
According to the CME Fed watch tool, the probability of a 50 bpbs rate hike in Mar jumped to 21% from 18.1% a week ago.
The US 10-year yield hits a multi-week high ahead of FOMC meeting minutes. The US 10 and 2-year spread narrowed to -73.30 basis points from -88% bpbs.
Technical:
The pair is trading below short-term 21 EMA, 55 EMA, and long-term (200-EMA) in the 4-hour chart. Any break above 1.0700 confirms intraday bullishness; a jump to 1.07350/1.0760/1.0800 is possible. The near-term support is around 1.0640. The breach below will drag the pair to 1.0600/1.0525.
Indicator (4-hour chart)
CCI – Bearish
Directional movement index – Neutral
It is good to sell on rallies around 1.0668-670 with SL around 1.0725 for a TP of 1.0500.
