FxWirePro- EURUSD Daily Outlook

FxWirePro- EURUSD Daily Outlook 

Ichimoku analysis (4-hour chart)
 
 Tenken-Sen- 1.05411
 
 Kijun-Sen- 1.05241
 
EURUSD  trades in a narrow range after a massive jump of more than 100 pips. It hit a low of 1.04482 the previous week and is currently trading around 1.05656.

The US dollar index gained momentum after the escalation of geopolitical tension. Israel strikes back Gaza after surprise attack by Hamas militants. The Israel and Palestine war continued for a third day and almost 700 Israelis and 600 people died in Gaza.

According to the CME Fed watch tool, the probability of a no-rate hike in Nov increased to 86.40% from 72.80% a week ago.
 
 The US 10-year yield pared more than 5% on geopolitical tension. The US 10 and 2-year spread narrowed to -32% from -75%.
 

The pair trades above short-term 21 EMA,  55 EMA, and below long-term (200-EMA) in the 4-hour chart.  Any break below 1.0480 confirms further bearishness. A decline to 1.0400/1.0340  is possible. The near-term resistance is around 1.0620, and any breach above targets is 1.0660/1.0700.
 
   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.