FxWirePro- EURUSD Daily Outlook

Ichimoku analysis (4-hour chart)

 Tenken-Sen- 1.06766

 Kijun-Sen- 1.06983

EURUSD showed a minor pullback after two months of massive sell-off. It hit a high of 1.06953 at the time of writing and is currently trading around 1.06930.

Markets eye US Fed monetary policy tomorrow for further direction.

Major economic data for the day

Sep 19, 2023, US Building permits, Housing starts  (12:30 pm GMT)

According to the CME Fed watch tool, the probability of a no-rate hike in Sep increased to 99% from 92% a week ago.

 The US 10-year yield pared some of its gains after hitting a multi-week high. The US 10 and 2-year spread widened to -74.5% from -57%.

The pair trades below short-term 21 EMA,  below  55 EMA, and long-term (200-EMA) in the 4-hour chart.  Any break below 1.0630 confirms further bearishness. A decline to 1.0600/1.0500  is possible. The near-term resistance is around 1.07050, any breach above targets is 1.07600/1.0800/1.0880.

   Indicator (4-hour chart)

   CCI – Bearish

  Directional movement index – Bearish

It is good to sell on rallies around 1.0708-10 with SL around 1.0765 for a TP of 1.0600.