Ichimoku analysis (4-hour chart)
Tenken-Sen- 1.08370
Kijun-Sen- 1.08289
EURUSD surged more than 100 pips yesterday on board-based US dollar selling. It hit a high of 1.08919 and is currently trading around 1.08624. The minor sell-off in US treasury yields also supports the Euro at lower levels.
US consumer sentiment declined in August to 106.10, compared to a forecast of 116.
Major economic data for the day
Aug 30, 2023, German Prelim CPI m/m (All day)
ADP Non-Farm Employment Change (12:15 pm GMT)
Prelim GDP q/q (12:30 pm)
According to the CME Fed watch tool, the probability of a no-rate hike in Sep decreased to 86.50% from 86% a week ago.
The US 10-year yield lost more than 5.5% due to weak US economic data. The US 10 and 2-year spread narrowed to -77.6% from -86.4%.
The pair trades above short-term 21 EMA, 55 EMA, and long-term (200-EMA) in the 4-hour chart. Any indicative break above 1.0900 confirms further bullishness, a jump to 1.09325/1.1000 is possible. The near-term support is around 1.0800. The breach below targets 1.07600/1.0700/1.0660.
Indicator (4-hour chart)
CCI – bullish
Directional movement index – Neutral
It is good to buy on dips around 1.0848-50 with SL around 1.0800 for a TP of 1.0935.
