FxWirePro- EURUSD Daily Outlook
EURUSD recovered above the 1.0600 level on board-based US dollar weakness. The dollar index trades weak despite a surge in US treasury yield and risk aversion as BOJ revises yield policy. It hits an intraday high of 1.06580 and is currently trading around 1.0153.
According to the CME Fed watch tool, the probability of a 50 bpbs rate hike in Dec rose to 65% from 57% a week ago.
The US 10-year yield gained sharply after the BOJ policy change. The US 10 and 2-year spread narrowed to -61.5 basis points from -85 bpbs.
Technical:
On the higher side, near-term resistance is around 1.0660 and any convincing breach above will take the pair to the next level of 1.0700/ 1.0750/1.0800.
The pair's immediate support is at 1.0570, breaking below targets of 1.0500/1.0430/1.0370/1.02900.
Indicator (4-hour chart)
Directional movement index – Bullish
CCI(50)- Bullish
It is good to buy on dips around 1.0600 with SL around 1.0560 for a TP of 1.0750.
