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FxWirePro- EURUSD Daily Outlook

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.

 

 

 

 

 

 

 

 

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