FxWirePro- EURUSD Daily Outlook

FxWirePro- EURUSD Daily Outlook 

Ichimoku analysis (4-hour chart)
              
 Tenken-Sen- 0.98910
 
 Kijun-Sen- 0.99287
 
EURUSD declined sharply, hitting the lowest level since Oct 2002 on a hawkish rate hike.  The central bank hiked rates by 75 bpbs to the 3-3.25% range and signaled a more aggressive increase in new projections. In new economic projections, the Fed projects the rate to reach 4.4% in 2022, and 4.65% in 2023. It has been said that job growth is robust and inflation remains "elevated". DXY pared some of its gains after hitting a fresh 20-year high.

According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Nov rose to 66.5% from 56.20% a week ago.

US 2-year yield surged to 4.10% after the Fed hike, the highest level since 2007.

 EURUSD hits a high of 0.99074 and is currently trading around 0.98812.
 
Technical:

On the higher side, near-term resistance is around 0.9925 and any convincing breach above will drag the pair to the next level of 0.9965/1.00500/1.0200.
 
The pair's immediate support is at 0.9800, breaking below targets of 0.9740/0.9700.
 
Indicator (4-hour chart)
 
Directional movement index – Neutral
 
 It is good to Sell on rallies around 0.9925-28 with SL around 0.9968 for TP of 0.9800.