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FxWirePro- EURUSD Daily Outlook

EURUSD pared some of its gains on surging US bond yields. The US 10-year yield breaks the previous week's high and hits a fresh 14-year high on hawkish Fed comments. The US 10 and 2-year spread narrowed to -44 basis points from -57 bpbs.

 The number of people who have filed for unemployment benefits in the week ending Oct 15 dropped to 214K compared to a forecast of 229k. US Philly fed manufacturing index declined to -8.7 in Oct vs. the -5 estimate.

According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Nov dropped to 96.5% from 97.20% a week ago.

Technical:

 

On the higher side, near-term resistance is around 0.9860 and any convincing breach above will drag the pair to the next level of 0.9920/0.9965/1.00500/1.0200.

 

The pair's immediate support is at 0.9750, breaking below targets of 0.9700/0.9630/0.9600.

 

Indicator (4-hour chart)

 

Directional movement index – Bearish

 

It is good to sell on rallies around 0.9808-10  with SL around 0.9880 for a TP of 0.95360.

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