FxWirePro- EURUSD Daily Outlook

Ichimoku analysis (4-hour chart)

 Tenken-Sen- 1.12071

 Kijun-Sen- 1.12250

EURUSD pared some of its gains despite weak US housing data. US housing starts declined by 8% to a seasonally adjusted annual rate of 143000 and building permits fell 3.7% to 1.44M.  It hits an intraday low of  1.11712 and is currently trading around 1.12095.

Major economic data for the day

Jul 20th, 2023, US Initial jobless claims (12:30 GMT)

 Philly fed manufacturing index

According to the CME Fed watch tool, the probability of a 25 bpbs rate hike in July increased to 99.80% from 93% a week ago.

 The US 10-year yield is trading weak on weak US housing data. The  US 10 and 2-year spread narrowed to -101% from -110%.

The pair trades above short-term 21 EMA,  55 EMA, and long-term (200-EMA) in the 4-hour chart.  Any indicative break above 1.1275 confirms intraday bullishness; a jump to 1.1300/1.1380  is possible. The near-term support is around 1.1180 The breach below targets 1.1130/1.1070.

   Indicator (4-hour chart)

   CCI – Bullish

  Directional movement index – Neutral

It is good to buy on dip around 1.1180 with SL around 1.1130 for a TP of 1.1300.