FxWirePro- EURUSD - Zero line reject

Pattern formed CCI (50)- Zero line reject

EURUSD formed a double top around 1.05000 and showed a minor decline on board-based US dollar buying. The demand for safe-haven assets gained due to heavy protests in China against Covid restrictions. It hits a low of 1.0330 and is currently trading around  1.03403.

European Central Bank President Lagarde told European lawmakers that the inflation has not yet peaked and the bank will take all necessary steps to tackle inflation.

According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Dec increased to 32.5% from 19.4% a week ago.

 The US 10-year yield recovered more than 2.5% after hitting a 2-week low. The US 10 and 2-year spread widened to -75 basis points from -57 bpbs

Technical:

On the higher side, near-term resistance is around 1.0400 and any convincing breach above will take the pair to the next level of 1.0435/1.0500.

The pair's immediate support is at 1.0300, breaking below targets of 1.02200.

Indicator (4-hour chart)

Directional movement index – Bullish

It is good to buy on dips around 1.0358-60 with SL around 1.0300 for a TP of 1.0500.