FxWirePro- EURUSD Daily Outlook

Ichimoku analysis (4-hour chart)

 Tenken-Sen- 1.08133

 Kijun-Sen- 1.08212

EURUSD showed a minor pullback on renewed market sentiment. It hit a high of  1.08381 and is currently trading around 1.08261. The minor sell-off in US treasury yields also supports the Euro at lower levels.

Major economic data for the day

 Aug 29th, 2023,  S&P/CS Composite-20 HPI y/y (1:00 pm GMT)

                                CB Consumer Confidence (2:00 pm GMT)

According to the CME Fed watch tool, the probability of a no-rate hike in Sep decreased to 78% from 86% a week ago.

 The US 10-year yield trades weak for the second consecutive day as markets expect a rate pause. The US 10 and 2-year spread widened to -80% from -66%.

The pair trades above short-term 21 EMA,  above  55 EMA, and long-term (200-EMA) in the 4-hour chart.  Any indicative break below 1.0760 confirms further bearishness: a decline to 1.0700/1.0660  is possible. The near-term resistance is around 1.0850. The breach above targets 1.0935/1.0965/1.1000.

   Indicator (4-hour chart)

   CCI – bearish

  Directional movement index – Neutral

It is good to sell on rallies around 1.0848-50 with SL around 1.0900 for a TP of 1.07660.