FxWirePro- EURUSD Daily Outlook

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.