FxWirePro- EURUSD Daily Outlook

Ichimoku analysis (4-hour chart)

 Tenken-Sen- 1.09959

 Kijun-Sen- 1.09634

EURUSD declined sharply yesterday on risk aversion. The US Producer price index came in at 0.20% in Apr compared to a forecast of 0.30%. Core PPI excluding food and energy costs up 0.20% month-on-month. It hits a low of 1.08999 and is currently trading around 1.09257.

The number of people who have filed for unemployment befits rose by 22000 to 264000 last week, the highest level in 2-1/2 weeks.

Major economic data for the day

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

 According to the CME Fed watch tool, the probability of a 25 bpbs rate hike in June increased to 12.9% from 0.0% a week ago.

 The US 10-year yield traded weak for the third consecutive day. The US 10 and 2-year spread narrowed to -51% from -108%.

The pair trades below short-term 21 EMA, 55 EMA, and above long-term (200-EMA) in the 4-hour chart.  Any indicative break below 1.0900 confirms intraday bearishness; a dip to 1.0830/1.0800 is possible. The near-term resistance is around 1.1000. The breach above targets 1.1070/1.1100.

  Indicator (4-hour chart)

   CCI – Bearish

  Directional movement index – Bearish

It is good to sell on rallies around 1.0968-70 with SL  around 1.1010 for a TP of 1.0830.