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FxWirePro- EURUSD Daily Outlook

Ichimoku analysis (4-hour chart)

 

 Tenken-Sen- 1.06071

 

 Kijun-Sen- 1.05584

 

EURUSD holds above the 1.06000 level after dovish FOMC minutes. It hit a high of 1.06396 and is currently trading around 1.06246.

 

According to these minutes, many participants saw continued downside risks to economic activity and upside risks to the unemployment rate.  US PPI rose 0.50%, compared to a forecast of 0.30%.  The core PPI  excluding food, energy, and trade services increased by 0.30% vs. an estimate of 0.20%.

 

 

According to the CME Fed watch tool, the probability of a no-rate hike in Nov increased to 91.50% from 76.90% a week ago.

 

 The US 10-year yield trades flat despite dovish FOMC minutes. The US 10 and 2-year spread narrowed to -38.9% from -75%.

 

 

The pair trades above short-term 21 EMA,  55 EMA, and below long-term (200-EMA) in the 4-hour chart.  Any break above 1.0660 confirms further bullishness. A jump to 1.0700/1.07368  is possible. The near-term support is around 1.0570, and any breach below targets is 1.0520/1.04800. Bullish invalidation only if it breaks below 1.0440.

 

   Indicator (4-hour chart)

 

   CCI – Bullish

 

  Directional movement index – Bullish

 

It is good to buy on dips around 1.05750 with SL around 1.05200 for a TP of 1.0700.

 

 

 

 

 

 

 

 

 

 

 

 

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