Ichimoku analysis (4-hour chart)
Tenken-Sen- 0.99815
Kijun-Sen- 1.00714
EURUSD pared some of its gains made yesterday on board-based US dollar buying. DXY gained momentum despite mixed US retail sales data. It rose 0.3% mom, above expectations of 0%. Core sales ex-auto dropped -0.3% mom vs. estimate of 0%. US NY Fed empire state manufacturing index improved to -1.5 in Sep vs. forecast of-12.70. Markets eye US retail sales and empire state manufacturing index for further direction.
According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Sep rose to 76% from 75% a week ago.
US 2-year yield surged to 3.924, the highest level since 2007 after hitting a minor bottom of 2.729%.
EURUSD hits a high of 0.99450 and is currently trading around 0.99506.
Technical:
On the higher side, near-term resistance is around 1.0200 and any convincing breach above will drag the pair to the next level of 1.0600/1.075/1.0100.
The pair's immediate support is at 0.9900, breaking below targets of 0.9860/0.9800.
Indicator (4-hour chart)
Directional movement index – Neutral
It is good to Sell below 0.9930 with SL around 0.9970 for TP of 0.9800.


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