Ichimoku analysis (4-hour chart)
Tenken-Sen- 1.06432
Kijun-Sen- 1.06768
EURUSD trades flat after massive sell-off. It hit a low of 1.06149 and is currently trading around 1.06319. The pair lost its momentum after the hawkish rate pause by the Fed.
Any upbeat German IFO will push the EURUSD prices higher S&P global flash manufacturing PMI rose to 48.9, the highest level in 2 months in Sep.
According to the CME Fed watch tool, the probability of a no-rate hike in Nov increased to 77.10% from 72.30% a week ago.
The US 10-year yield declined slightly despite upbeat US economic data. The US 10 and 2-year spread narrowed to -65% from -75%.
The pair trades below short-term 21 EMA, below 55 EMA, and long-term (200-EMA) in the 4-hour chart. Any break below 1.0600 confirms further bearishness. A decline to 1.0500/1.04350 is possible. The near-term resistance is around 1.0660, any breach above targets is 1.0700/1.0760.
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.


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