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FxWirePro- EURUSD Daily Outlook

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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