Ichimoku analysis (4-hour chart)
Tenken-Sen- 1.08956
Kijun-Sen- 1.08883
EURUSD is trading slightly lower ahead of the US FOMC meeting minutes. Markets await Fed members' views on the terminal rate and Fed funds rate this year. It hits a low of 1.08677 at the time of writing and is currently trading around 1.8852.
According to the CME Fed watch tool, the probability of a 25 bpbs rate hike in July increased to 86.20% from 76.90% a week ago.
The US 10-year yield consolidates in a narrow range due to the US holiday. The US 10 and 2-year spread widened to -105% from -94.8%.
The pair trades below short-term 21 EMA, 55 EMA, and above long-term (200-EMA) in the 4-hour chart. Any indicative break above 1.0945 confirms intraday bullishness; a jump to 1.1000/1.1100 is possible. The near-term support is around 1.0850. The breach below targets 1.0800/1.0760.
Indicator (4-hour chart)
CCI – Bullish
Directional movement index – Bullish
It is good to buy on dips around 1.0860 with SL around 1.0820 for a TP of 1.100/1.1100.
