Ichimoku analysis (4-hour chart)
Tenken-Sen- 1.05248
Kijun-Sen- 1.05200
EURUSD showed a minor pullback ahead of US NFP data. It hit a high of 1.05513 yesterday and is currently trading around 1.05441. The US economy is expected to have added 171000 jobs in Sep from the previous month 187000. The unemployment rate is likely to decline to 3.7% from 3.8%.
The number of people who have filed for unemployment benefits rose by 2000 to 207000 in the week ending September 30th, 2023.
According to the CME Fed watch tool, the probability of a no-rate hike in Nov increased to 78.30% from 76.90% a day ago.
The US 10-year yield trades flat ahead of US Non-farm payroll data. The US 10 and 2-year spread narrowed to -30% 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 below 1.04480 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 – Bullish
Directional movement index – Neutral
It is good to sell on rallies around 1.0548-550 with SL around 1.0600 for a TP of 1.0400.
