Ichimoku analysis (4-hour chart)
Tenken-Sen- 1.08637
Kijun-Sen- 1.08556
EURUSD trades above the 1.0900 level on board-based US dollar selling. It hit a high of 1.06454 and is currently trading around 1.09340.
The US private sector has added 177000 jobs in August, below expectations of 194000. The US economy increased at an annualized pace of 2.1% in the second quarter, compared to a forecast of 2.4%.
Major economic data for the day
Aug 31st, 2023, Core PCE index m/m (12:30 pm GMT)
Unemployment claims
According to the CME Fed watch tool, the probability of a no-rate hike in Sep increased to 88.50% from 88% a week ago.
The US 10-year yield hits a fresh two-week low on dismal 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 1.0965 confirms further bullishness, a jump to 1.1000/1.1070 is possible. The near-term support is around 1.0880. The breach below targets 1.0830/1.07600/1.0700/1.0660.
Indicator (4-hour chart)
CCI – bullish
Directional movement index – Bullish
It is good to buy on dips around 1.0880-85 with SL around 1.0835 for a TP of 1.1000.
