FxWirePro- EURUSD Daily Outlook
Ichimoku analysis (4-hour chart)
Tenken-Sen- 1.00251
Kijun-Sen- 1.00021
EURUSD holds above 1.000 level on rate hike hope by ECB. Eurozone consumer prices surged to 9.1% in August compared to a forecast of 8.9% also increasing the chance of a rate hike to 68% by the ECB. Markets eye US ISM manufacturing PMI Board consumer confidence for further direction.
US 10-year yield rose by 25% from a minor bottom of 2.518%. The spread between German and Italian yields was close to 2.30%.
According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Sep rose to 73% from 64% a week ago.
EURUSD hits a high of 1.00790 and is currently trading around 1.00460.
Technical:
On the higher side, near-term resistance is around 1.0400 and any convincing breach above will drag the pair to the next level of 1.075/1.0100.
The pair's immediate support is at 0.9970, breaking below targets of 0.9940/0.9890.
Indicator (4-hour chart)
Directional movement index – Bullish
It is good to buy on dips around 0.9978-80 with SL around 0.9948 for a TP of 1.0650.
