Ichimoku analysis (4-hour chart)
Tenken-Sen- 1.09041
Kijun-Sen- 1.09087
EURUSD trades flat ahead of the German IFO business climate. It hit a high of 1.09306 yesterday and is currently trading around 1.09134.
Eurozone flash manufacturing surged to 43.8 in November, compared to a forecast of 43.30. The services PMI rose to 48.20 slightly above the estimate of 48.
According to the CME Fed watch tool, the probability of a no-rate hike in Dec decreased to 95.2% from 100% a week ago.
The US 10-year yield gained more than 2% after hitting a multi-week low. The US 10 and 2-year spread widened to -48.50% from -16%.
The pair trades above short-term 21 EMA, above 55 EMA, and long-term (200-EMA) in the 4-hour chart. Any break above 1.100 confirms further bullishness. A jump to 1.1070/1.1100 is possible. The near-term support is around 1.0850 and any breach below targets is 1.0835/1.0800/1.0760. Bullish invalidation only if it breaks below 1.0440.
Indicator (4-hour chart)
CCI – bullish
Directional movement index – Neutral
It is good to buy on dip around 1.0850 with SL around 1.0800 for a TP of 1.1000.
