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FxWirePro- EURUSD Daily Outlook

Ichimoku analysis (4-hour chart)

 

 Tenken-Sen- 1.09103

 

 Kijun-Sen- 1.09282

 

EURUSD showed a minor pullback after hitting a low of 1.08440. Markets eye ECB president Lagarde, members Panetta and Elderson's speech for further direction. It hits an intraday high of  1.09413 and is currently trading around 1.09388.

 

Major economic data for the day

 

US Core durable goods order (12:30 pm GMT)

 

CB consumer confidence (2:00 pm GMT)

 

US New home sales (2:00 pm GMT)

 

 

According to the CME Fed watch tool, the probability of a 25 bpbs rate hike in July increased to 75.6% from 74.40% a week ago.

 

 The US 10-year yield pared some of its gains ahead of the US durable goods orders. The US 10 and 2-year spread narrowed to  -95.6% from -103%.

 

The pair trades below short-term 21 EMA,  above 55 EMA, and long-term (200-EMA) in the 4-hour chart.  Any indicative break above 1.09350 confirms intraday bullishness; a jump to 1.0965/1.1000 is possible. The near-term support is around 1.0900. The breach below targets 1.0865/1.0828/1.0800/1.0760.

 

   Indicator (4-hour chart)

 

   CCI – Neutral

 

  Directional movement index – Bullish

 

It is good to buy on dips around 1.0900 with SL  around 1.0860 for a TP of 1.100/1.1090.

 

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