Ichimoku analysis (4-hour chart)
Tenken-Sen- 1.06922
Kijun-Sen- 1.06363
EURUSD trades below 1.0700 ahead of US CPI data. Headline inflation is anticipated to rise by 0.40% m/m from 0.50% the previous month. The yearly CPI was expected 6% vs . 6.40% the previous month. The collapse of Silicon valley bank and Signature bank has decreased the chance of a rate hike by the Fed. It hits an intraday high of 1.07485 and is currently trading around 1.06958.
According to the CME Fed watch tool, the probability of a no-rate hike in Mar increased to 24% from 0% a day ago.
The US 2-year yield showed a minor pullback after a 13% fall yesterday, the biggest single-day drop since 1987. The US 10 and 2-year spread narrowed to 41% from -107%.
Technical:
The pair is trading above short-term 21 EMA, below 55 EMA, and long-term (200-EMA) in the 4-hour chart. Any break above 1.0760 confirms further bullishness, a jump to 1.0810/1.0850 is possible. The near-term support resistance is around 1.0625. The breach above will take the pair to 1.0660/1.0700.
Indicator (4-hour chart)
CCI – Bullish
Directional movement index – neutral
It is good to buy on dips around 1.0660 with SL around 1.0600 for a TP of 1.0800.
