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FxWirePro- EURUSD Daily Outlook

Ichimoku analysis (4-hour chart)

 

 Tenken-Sen- 1.08873

 

 Kijun-Sen- 1.09083

 

EURUSD  consolidating in a narrow range between 1.09345 and 1.08565 for the past two days. It hit a low of  1.08563 yesterday and is currently trading around 1.08677.

 

The number of people who have filed for unemployment benefits declined by 11000 to 239000 for the week ending Aug 12th, 2023, compared to a forecast of 240000. US Philly fed manufacturing index jumped to 12 vs -10 expected.

 

                            

According to the CME Fed watch tool, the probability of a no-rate hike in Sep decreased to 88.5% from 90% a week ago.

 

 The US 10-year yield pared some of its gains after hitting a multi-week high. The  US 10 and 2-year spread narrowed to -67% from -110%.

 

 

The pair trades below short-term 21 EMA,  below 55 EMA, and long-term (200-EMA) in the 4-hour chart.  Any indicative break below 1.0830 confirms further bearishness: a decline to 1.0760/1.0700  is possible. The near-term resistance is around 1.0920. The breach above targets 1.0950/1.1000/ 1.1070/1.1100/1.1150.

 

   Indicator (4-hour chart)

 

   CCI – bearish

 

  Directional movement index – Neutral

 

It is good to sell on rallies around 1.0900 with SL around 1.0960 for a TP of 1.0800.

 

 

 

 

 

 

 

 

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