FxWirePro- EURUSD Daily Outlook

Ichimoku analysis (4-hour chart)

 Tenken-Sen- 1.09700

 Kijun-Sen- 1.09770

EURUSD showed a minor pullback despite increased risk aversion. It hits a high of  1.09850 yesterday and is currently trading around 1.09844.

Reasons for the increase in safe-haven demand-

Moody's downgraded US 11 mid and small-sized banks and 11 US lenders

Announcement of windfall tax on bank profits by Italy government.

According to the CME Fed watch tool, the probability of a no-rate hike in Sep increased to 86.50% from 82% a week ago.

 The US 10-year yield lost more than 5%  as Moody downgrades banks. The  US 10 and 2-year spread narrowed to -74 from -110%.

The pair trades below short-term 21 EMA,  above 55 EMA, and long-term (200-EMA) in the 4-hour chart.  Any indicative break below 1.0900 confirms further bearishness: a decline to 1.0830/1.0760  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.