FxWirePro- EURUSD Daily Outlook

Ichimoku analysis (4-hour chart)

 Tenken-Sen- 1.08981

 Kijun-Sen- 1.09333

EURUSD trading weak for the past four days on board-based US dollar buying. It hit a low of   1.08616 yesterday and is currently trading around 1.08705.

US FOMC meeting minutes indicate that the central bank to hike rates to tackle inflation.

Major economic data for the day

Aug 17th, 2023, US Unemployment claims (12:30 pm GMT)

 Philly Fed manufacturing index

According to the CME Fed watch tool, the probability of a no-rate hike in Sep decreased to 86.5% from 89% a week ago.

 The US 10-year yield hits multi-week on hawkish FOMC meeting minutes. The  US 10 and 2-year spread narrowed to -70% 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 1.0830 confirms further bearishness: a decline to 1.0760/1.0700  is possible. The near-term resistance is around 1.0920. The breach above targets 1.0950/1.1000/ 1.1070/1.1100/1.1150.

   Indicator (4-hour chart)

   CCI – bearish

  Directional movement index – Bearish

It is good to sell on rallies around 1.0900 with SL around 1.0960 for a TP of 1.0800.