Ichimoku analysis (4-hour chart)
Tenken-Sen- 1.05835
Kijun-Sen- 1.05526
EURUSD pared some of its gains after a minor pullback. It hit a low of 1.05575 and is currently trading around 1.05861.
US annual PCE inflation advanced 3.9% in August, in line with estimates. Every month, Personal consumption expenditure rose 0.1%, below the estimate of 0.20%.
Markets eye the Eurozone, German manufacturing, and US ISM manufacturing PMI for further direction.
According to the CME Fed watch tool, the probability of a 25 bpbs rate hike in Nov increased to 30.9% from 18.3% a day ago.
The US 10-year yield showed a minor pullback of 2.5% on upbeat US economic data. The US 10 and 2-year spread narrowed to -46.6% 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 above 1.0660 confirms further bullishness. A jump to 1.0700/1.0760 is possible. The near-term support is around 1.0550, 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.
