FxWirePro- EURUSD Daily Outlook

Ichimoku analysis (4-hour chart)

 Tenken-Sen- 1.08835

 Kijun-Sen- 1.09059

EURUSD showed a minor pullback after a weak US PCE index. Headline US PCE index rose 0.10% m/m, below expectations of 0.50%. Core PCE came at 0.30% m/m, in line with market expectations. It hits a high of 1.09318 and is currently trading around 1.09137.

Major economic data for the day

Jul 3rd, 2023, US ISM manufacturing PMI (2:00 pm GMT)

According to the CME Fed watch tool, the probability of a 25 bpbs rate hike in July increased to 87.40% from 71.90% a week ago.

 The US 10-year yield pared some of its gains on weak US PCE. The US 10 and 2-year spread widened to -107.50% from -94.8%.

The pair trades above short-term 21 EMA,  55 EMA, and long-term (200-EMA) in the 4-hour chart.  Any indicative break above 1.0945 confirms intraday bullishness; a jump to 1.1000/1.1100 is possible. The near-term support is around 1.0900. The breach below targets 1.0865/1.0800.

   Indicator (4-hour chart)

   CCI – Bullish

  Directional movement index – Bullish

It is good to buy on dips around 1.0860 with SL  around 1.0820 for a TP of 1.100/1.1090.