FxWirePro- EURUSD Daily Outlook

Ichimoku analysis (4-hour chart)

 Tenken-Sen- 1.10208

 Kijun-Sen- 1.08959

EURUSD  is trading weak for the 7th consecutive day on the strong US dollar. The pair is holding well below 200-W MA and is currently trading around 1.07059.

The US dollar index edges towards 105 (9-month high) on surging US bond yields and renewed risk aversion.

According to the CME Fed watch tool, the probability of a no-rate hike in Sep increased to 93% from 86% a week ago.

 The US 10-year yield showed a nice gap up in hopes of a further rate hike by the Fed. The US 10 and 2-year spread narrowed to -69% from -86.4%.

The pair trades below short-term 21 EMA,  55 EMA, and long-term (200-EMA) in the weekly chart.  Any consecutive weekly close below 1.07865 confirms further bearishness. A decline to 1.0660/1.0600  is possible. The near-term resistance is around 1.0760, any breach above targets is 1.0800/1.0880.

   Indicator (4-hour chart)

   CCI – Bearish

  Directional movement index – Bearish

It is good to sell on rallies around 1.0765-68 with SL around 1.0820 for a TP of 1.0600.