Ichimoku analysis (4-hour chart)
Tenken-Sen- 1.05259
Kijun-Sen- 1.05386
EURUSD is trading near a year low in hopes of another 25 bpbs rate hike by the Fed. It hit a low of 1.0460 at the time of writing and is currently trading around 1.04873.
US ISM manufacturing PMI came in at 49 for Sep, compared with 47.6 in August. Markets eye US JOLTS job opening.
According to the CME Fed watch tool, the probability of a no-rate hike in Nov decreased to 74.30% from 81.5% a week ago.
The US 10-year yield gained sharply in hopes of a Fed rate hike. The US 10 and 2-year spread narrowed to -42% 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 1.0460 confirms further bearishness. A decline to 1.0400/1.0340 is possible. The near-term resistance is around 1.0550, and any breach above targets is 1.0600/1.0660.
Indicator (4-hour chart)
CCI – Bearish
Directional movement index – Bearish
It is good to sell on rallies around 1.0548-550 with SL around 1.0600 for a TP of 1.0400.
