FxWirePro- EURUSD Daily Outlook

Ichimoku analysis (4-hour chart)

 Tenken-Sen- 1.10022

 Kijun-Sen- 1.09771

EURUSD struggles to close above the 1.1000 level amid cautious market sentiment. It hits a low of  1.09650 yesterday and is currently trading around 1.09882.

Fed governor Michelle Bowman stated that "I also expect that additional rate increases will likely be needed to get inflation on a path down to the FOMC's 2 percent target."

Major economic data for the week

Major economic data for the day

Aug 8th, 2023,  FOMC member Harker’s speech  (12:15 pm GMT)

According to the CME Fed watch tool, the probability of a no-rate hike in Sep increased to 86.50% from 81% a week ago.

 The US 10-year yield pared some of its gains despite hawkish fed officials. The  US 10 and 2-year spread narrowed to -71 from -110%.

The pair trades above short-term 21 EMA,  above 55 EMA, and long-term (200-EMA) in the 4-hour chart.  Any indicative break below 1.0950 confirms further bearishness: a decline to 1.0900/ 1.0850/1.0800  is possible. The near-term resistance is around 1.100. The breach above targets 1.1050/1.1100.

   Indicator (4-hour chart)

   CCI – Neutral

  Directional movement index – neutral

It is good to sell on rallies around 1.100 with SL around 1.1050 for a TP of 1.0800.