FxWirePro- EURUSD Daily Outlook

Ichimoku analysis (4-hour chart)

 Tenken-Sen- 1.09956

 Kijun-Sen- 1.10467

EURUSD showed a nice pullback after a massive sell-off. The pair lost its shine after a dovish rate hike by the European central bank. It gained nearly 100 pips from a temporary low of 1.09437 on mixed US economic data. It hits a high of  1.10485 and is currently trading around 1.10177.

According to the commerce department, the PCE index increased 0.20%, in line with the estimate. Core inflation rose 4.1% YoY, down from 4.6% in May. Markets eye Euro CPI flash estimate data for further direction.

According to the CME Fed watch tool, the probability of a no-rate hike in Sep decreased to 81.60% from 80.50% a week ago.

 The US 10-year yield trades flat despite weak US PCE index. The  US 10 and 2-year spread narrowed to -91.50% from -110%.

The pair trades below short-term 21 EMA,  55 EMA, and long-term (200-EMA) in the 4-hour chart.  Any indicative break above 1.1050 confirms further bullishness: a jump to 1.1100/1.1150  is possible. The near-term support is around 1.1000. The breach below targets 1.0950/1.0900.

   Indicator (4-hour chart)

   CCI – Bearish

  Directional movement index – Bearish

It is good to buy above 1.1050 with SL around 1.1000 for a TP of 1.1150.