FxWirePro- EURUSD Daily Outlook

Candlestick pattern- Shooting star

EURUSD consolidated in a narrow range between 1.0480 and 1.05329 for the past two trading days.  The chance of an economic recession in the globe supporting the US dollar at lower levels.  It hits an intraday low of 1.04431 and is currently trading around 1.04772.

German industrial production dropped to -0.10% in Oct, versus consensus expectations for a 0.60% drop.

According to the CME Fed watch tool, the probability of a 50 bpbs rate hike in Dec rose to 77% from 66.3% a week ago.

 The US 10-year yield lost more than 2.5% from yesterday's high of 3.61%. The US 10 and 2-year spread widened to -82.2 basis points from -67 bpbs.

Technical:

On the higher side, near-term resistance is around 1.0550 and any convincing breach above will take the pair to the next level of 1.0600/1.0660.

The pair's immediate support is at 1.0435, breaking below targets of 1.0370/1.02900.

Indicator (4-hour chart)

Directional movement index – Neutral

CCI(50)- Bullish

It is good to buy on dips around 1.0450 with SL around 1.0400 for a TP of 1.0660.