FxWirePro- EURUSD trades weak on dismal German IFO data, market eyes Fed chairman speech

Ichimoku analysis (4-hour chart)

 Tenken-Sen- 1.08267

 Kijun-Sen- 1.08836

EURUSD hits a multi-week low on board-based US dollar buying. It hit a low of  1.07660 and is currently trading around 1.07792.

German IFO business climate declined to 85.70 in August, compared to a forecast of 86.70.

The number of people who have filed unemployment benefits the week ending Aug 19 to 23000 compared to a forecast of 239000. US durable goods orders fell 5.2% in July vs. -4 expected.

Markets eye US Fed chairman speech in Jackson Hole symposium for further movement.

Major economic data to watch today

 Aug 25th, 2023,  Jackson Hole Symposium Powell speech (2:05 pm GMT)

According to the CME Fed watch tool, the probability of a no-rate hike in Sep decreased to 80.50% from 88% a week ago.

 The US 10-year yield showed a minor jump ahead of Powell's speech. The US 10 and 2-year spread widened to -78% from -66%.

The pair trades below short-term 21 EMA,  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 – Bearish

It is good to sell on rallies around 1.0828-30 with SL around 1.0880 for a TP of 1.0700.