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.
