Ichimoku analysis (4-hour chart)
Tenken-Sen- 1.06053
Kijun-Sen- 1.05891
EURUSD showed a minor pullback ahead of German CPI. Euro gaining momentum on hawkish ECB rate hike expectations. EURUSD hits an intraday high of 1.06431 and is currently trading around 1.06433.
The conference board consumer confidence declined for a second consecutive month in Feb to 102.90 vs. the forecast of 108.50 US Richmond manufacturing index decreased to -16 in Feb, below the forecast of -5.
Major economic data today
US ISM manufacturing PMI
According to the CME Fed watch tool, the probability of a 50 bpbs rate hike in Mar declined to 23.30% from 24% a week ago.
The US 10-year yield trades flat after a minor pullback. The US 10 and 2-year spread widened to -89.7 basis points from -77% 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 below 1.05700 confirms intraday bearishness; a dip to 1.0530/1.0500 is possible. The near-term resistance is around 1.0650. The breach above will push the pair to 1.0700/1.08000/1.08850.
Indicator (4-hour chart)
CCI – Bearish
Directional movement index – Bullish
It is good to sell on rallies around 1.0650 with SL around 1.0700 for a TP of 1.0480.
