FxWirePro- EURUSD Daily Outlook

Ichimoku analysis (4-hour chart)

 Tenken-Sen- 1.09742

 Kijun-Sen- 1.09973

EURUSD lost its shine despite weak US inflation data.  CPI declined to 4.9% YoY compared to a forecast of 5%. On a monthly basis, CPI and Core CPI rose 0.40% in line with estimates. is trading well below 1.1000 ahead of US CPI data. The dovish comments from ECB policymaker Nagel also put pressure on Euro at higher levels. The pair hits an intraday low of 1.09500 and currently trading around 1.09581.

Major economic data for the day

May  11th, 2023  BOE Monetary policy (11 am GMT)   

                 US PPI   (12:30 pm GMT)

                 Unemployment benefits (12:30 pm)

 According to the CME Fed watch tool, the probability of a no-rate hike in June increased to 91.50% from 77.10% a week ago.

 The US 10-year yield pared some of its gains after US CPI. The US 10 and 2-year spread narrowed to -49.50% from -108%.

 The pair trades below short-term 21 EMA, 55 EMA, and above long-term (200-EMA) in the 4-hour chart.  Any indicative break below 1.0930 confirms intraday bearishness; a dip to jump to 1.1070/1.1100 is possible. The near-term support is around 1.0930. The breach below targets 1.0900/1.08300.

 Indicator (4-hour chart)

  CCI – Bearish

  Directional movement index – Bearish

It is good to sell on rallies around 1.0968-70 with SL  around 1.1010 for a TP of 1.0830.