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FxWirePro- EURUSD Daily Outlook

Ichimoku analysis (4-hour chart)

 

 Tenken-Sen- 1.09217

 

 Kijun-Sen- 1.09104

 

EURUSD pared some of its gains after Powell's repeated his hawkish stance in yesterday's speech. Markets eye Spanish and German inflation data for further direction. It hits an intraday low of 1.08806 and is currently trading around 1.09151.

Major economic data for the day

 

US Initial jobless claims (12:30 pm GMT)

 

US Final GDP ECB Lagarde Speaks (3:00 pm GMT)

 

According to the CME Fed watch tool, the probability of a 25 bpbs rate hike in July increased to 81.8% from 74.40% a day ago.

 

 The US 10-year yield is trading flat despite hawkish comments from the Fed chairman. The US 10 and 2-year spread widened to -100% from -94.8%.

 

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 1.09500 confirms intraday bullishness; a jump to 1.1000 is possible. The near-term support is around 1.08800. The breach below targets 1.0865/1.0828/1.0800/1.0760.

 

   Indicator (4-hour chart)

 

   CCI – Bullish

 

  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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