Ichimoku analysis (4-hour chart)
Tenken-Sen- 1.09700
Kijun-Sen- 1.09770
EURUSD showed a minor pullback despite increased risk aversion. It hits a high of 1.09850 yesterday and is currently trading around 1.09844.
Reasons for the increase in safe-haven demand-
Moody's downgraded US 11 mid and small-sized banks and 11 US lenders
Announcement of windfall tax on bank profits by Italy government.
According to the CME Fed watch tool, the probability of a no-rate hike in Sep increased to 86.50% from 82% a week ago.
The US 10-year yield lost more than 5% as Moody downgrades banks. The US 10 and 2-year spread narrowed to -74 from -110%.
The pair trades below short-term 21 EMA, above 55 EMA, and long-term (200-EMA) in the 4-hour chart. Any indicative break below 1.0900 confirms further bearishness: a decline to 1.0830/1.0760 is possible. The near-term resistance is around 1.100. The breach above targets 1.1050/1.1100.
Indicator (4-hour chart)
CCI – Neutral
Directional movement index – neutral
It is good to sell on rallies around 1.100 with SL around 1.1050 for a TP of 1.0800.


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