FxWirePro- EURUSD Daily Outlook

Ichimoku analysis (4-hour chart)

 Tenken-Sen- 1.06118

 Kijun-Sen- 1.05913

EURUSD showed a nice pullback above 1.0600 after a long consolidation. It hit a high of 1.06283 and is currently trading around 1.06108.

Atlanta Fed President Raphael Bostic said that the US central bank doesn't need to increase rates anymore. The US dollar index lost its shine after dovish comments from fed officials. Markets eye US PPI and FOMC meeting minutes for further direction.

According to the CME Fed watch tool, the probability of a no-rate hike in Nov increased to 84.30% from 71.80% a week ago.

 The US 10-year yield trades in a narrow range ahead of the US PPI. The US 10 and 2-year spread narrowed to -35.6% 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 above 1.0660 confirms further bullishness. A jump to 1.0700/1.07368  is possible. The near-term support is around 1.0570, and any breach below targets is 1.0520/1.04800. Bullish invalidation only if it breaks below 1.0440.

   Indicator (4-hour chart)

   CCI – Bullish

  Directional movement index – Bullish

It is good to sell on rallies around 1.0608-610 with SL around 1.0660 for a TP of 1.0400.