FxWirePro- EURUSD Daily Outlook

Ichimoku analysis (4-hour chart)

 Tenken-Sen- 1.05354

 Kijun-Sen- 1.05715

EURUSD recovered above 1.0600 ahead of US PCE data. It hit a high of 1.06107 and is currently trading around 1.05994.

US real GDP grew at an annual rate of 2.1% in Q2 as expected. The number of people who have filed for unemployment benefits rose to 204K in the week ended September 23rd, 2023, compared to a forecast of 215000.

Markets eye the US PCE index and Chicago PMI for further direction.

According to the CME Fed watch tool, the probability of a no-rate hike in Nov increased to 81.6% from 77.5% a week ago.

 The US 10-year yield pared some of its gains on profit booking. The US 10 and 2-year spread narrowed to -48% from -75%.

The pair trades above short-term 21 EMA,  below  55 EMA, and long-term (200-EMA) in the 4-hour chart.  Any break above 1.06100 confirms further bullishness. A jump to 1.0660/1.0700  is possible. The near-term support is around 1.05600, and any breach below targets 1.0500/1.04800.

   Indicator (4-hour chart)

   CCI – Bearish

  Directional movement index – neutral

It is good to buy on dips around 1.05600-625 with SL around 1.0500 for a TP of 1.0700.