Ichimoku analysis (4-hour chart)
Tenken-Sen- 1.08914
Kijun-Sen- 1.08897
EURUSD recovered more than 70 pips from the multi-week low. It hits a high of 1.09304 and is currently trading around 1.09170.
The renewed positive market sentiment and minor fip in US treasury yield support Euro at a lower level.
Major economic data to watch today
Aug 22nd, 2023, Existing home sales and Richmond manufacturing index (2:00 pm GMT)
According to the CME Fed watch tool, the probability of a no-rate hike in Sep increased to 84.50% from 90% a week ago.
The US 10-year yield surged sharply and hit its highest level since 2007 on rate hike fears. The US 10 and 2-year spread narrowed to -66% from -110%.
The pair trades above 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 1.0935. The breach above targets 1.0965/1.1000/ 1.1070/1.1100/1.1150.
Indicator (4-hour chart)
CCI – bearish
Directional movement index – Neutral
It is good to sell on rallies around 1.0955-58 with SL around 1.1000 for a TP of 1.0800.
