FxWirePro- EURUSD Daily Outlook  

Ichimoku analysis (4-hour chart)
 
 Tenken-Sen- 1.10161
 
 Kijun-Sen- 1.09969
 
EURUSD  pared some of its gains despite weak US inflation. It hits a high of  1.10649 yesterday and is currently trading around 1.09950.

US annual CPI rose 3.2% in Jul, compared to a forecast of 3.3%. The headline and core inflation m/m came at 0.20% in line with expectations. The number of people who have filed for unemployment benefits surged to 248000 in the week ended Aug 5, the highest level since the week ended on Jul 1st.

Major economic data for the day 

Aug 11th, 2023, US PPI m/m (12:30 pm GMT)

                             
According to the CME Fed watch tool, the probability of a no-rate hike in Sep increased to 89% from 82% a day ago.
 
 The US 10-year yield jumped sharply despite weak CPI data. The  US 10 and 2-year spread narrowed to -74% from -110%.
 

The pair trades below short-term 21 EMA,  below 55 EMA, and long-term (200-EMA) in the 4-hour chart.  Any indicative break below 1.0900 confirms further bearishness: a decline to 1.0830/1.0760  is possible. The near-term resistance is around 1.100. The breach above targets 1.1070/1.1100/1.1150.
 
   Indicator (4-hour chart)
 
   CCI – Neutral
 
  Directional movement index – neutral
 
It is good to sell on rallies around 1.1018-20 with SL around 1.1070 for a TP of 1.0800.