FxWirePro- EURUSD Daily Outlook

EURUSD breaks the previous week's high after a minor consolidation and reaches a multi-month high on board-based US dollar selling. Germany's ZEW economic sentiment improved to -36.7 in Nov compared to a forecast of -50. While Eurozone ZEW came at -38.7 in Nov vs -52 expected. Markets eye to the US president and Chinese Xi Jinping meeting at the G20 summit for further direction.  EURUSD hits 1.04375 and is currently trading around 1.04228.

Major events today –

US Empire state manufacturing Index – 1:30 pm

US PPI- 1:30 pm

According to the CME Fed watch tool, the probability of a 50 bpbs rate hike in Dec increased to 80.6% from 52% a week ago.

 The US 10-year yield lost more than 10% after hitting a high of 4.244%. The US 10 and 2-year spread narrowed to -52 basis points from -67 bpbs.

Technical:

On the higher side, near-term resistance is around 1.04350 and any convincing breach above will drag the pair to the next level of 1.1500/1.15650.

The pair's immediate support is at 1.0370, breaking below targets of 1.0300/1.0260.

Indicator (4-hour chart)

Directional movement index – Bullish

CCI(50)- Bullish

It is good to buy on dips around 1.0358-60 with SL around 1.0300 for a TP of 1.05000.