FxWirePro- EURUSD Daily Outlook

Ichimoku analysis (4-hour chart)

 Tenken-Sen- 1.08388

 Kijun-Sen- 1.08664

EURUSD showed a minor pullback ahead of Powell's speech at the Jackson hole symposium. It hit a low of  1.08023 and is currently trading around 1.08245.

S&P manufacturing PMI declined to 47in August, compared to a forecast of 48.90. The services PMI showed a minor drop to 51 vs. an estimate of 52.10.

Major economic data for the day

 Aug 24th, 2023, US Core durable goods order and unemployment claims (12:30 pm GMT)  

According to the CME Fed watch tool, the probability of a no-rate hike in Sep decreased to 86.5% from 88% a week ago.

 The US 10-year yield falls more than 4% on dismal US flash PMI data. The  US 10 and 2-year spread widened to -78% from -66%.

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 1.0800 confirms further bearishness: a decline to 1.0760/1.0700  is possible. The near-term resistance is around 1.0880. The breach above targets 1.09350/1.0965/1.1000/ 1.1070/1.1100/1.1150.

   Indicator (4-hour chart)

   CCI – bearish

  Directional movement index – Neutral

It is good to sell on rallies around 1.0858-60 with SL around 1.09050 for a TP of 1.0760