FxWirePro- EURUSD Daily Outlook

Ichimoku analysis (4-hour chart)

 Tenken-Sen- 1.10073

 Kijun-Sen- 1.10169

EURUSD showed a nice pullback despite upbeat US Non-farm payroll data. The US economy added 253000 non-farm payrolls in Apr, well above the estimated 181000. The unemployment rate dropped to 3.40%, the lowest level since May 1969. The pair hits an intraday high of 1.10534 and currently trading around 1.10477.

Major economic data this week

May 10th, 2023 US CPI m/m  (12:30 pm GMT)

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

                                US PPI   (12:30 pm GMT)

                               Unemployment benefits (12:30 pm)

May 12th, 2023, Prelim UoM Consumer Sentiment (2 pm GMT)

 According to the CME Fed watch tool, the probability of a no-rate hike in June increased to 90.40% from 64.6% a week ago.

 The US 10-year yield jumped more than 5%  despite strong US nonfarm payroll. The US 10 and 2-year spread narrowed to -50% from 108%.

The pair trades above short-term 21 EMA, 55 EMA, and long-term (200-EMA) in the 4-hour chart.  Any indicative break above 1.1070 confirms intraday bullishness; a jump to 1.110/1.1165 is possible. The near-term support is around 1.100. The breach below targets 1.0960/1.0930.

 Indicator (4-hour chart)

  CCI – Bullish

  Directional movement index – neutral

It is good to buy on dips around 1.100 with SL around 1.0950 for a TP of 1.1100.