FxWirePro- EURUSD Daily Outlook

Ichimoku analysis (4-hour chart)

 Tenken-Sen- 1.09717

 Kijun-Sen- 1.09969

EURUSD is trading lower for the second consecutive day after a minor pullback above the 1.1050 level. It hits a high of  1.10649 yesterday and is currently trading around 1.09250.

The pair gained momentum after easing US inflation. Both headline and core CPI rose 0.20%, in line with the estimate. The annual CPI came at  3.2% in Jul, compared to a forecast of 3.3%.  US PPI also eased down, slightly below forecast.

According to the CME Fed watch tool, the probability of a no-rate hike in Sep decreased to 88.5% from 90% a week ago.

 The US 10-year yield trades higher for the fourth consecutive week despite weak US inflation. The  US 10 and 2-year spread narrowed to -74% from -110%.

The pair trades below short-term 21 EMA,  below 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 1.1070/1.1100/1.1150.

   Indicator (4-hour chart)

   CCI – Neutral

  Directional movement index – neutral

It is good to sell on rallies around 1.1018-20 with SL around 1.1070 for a TP of 1.0800.