FxWirePro- EURUSD Daily Outlook

Ichimoku analysis (4-hour chart)

 Tenken-Sen- 1.05722

 Kijun-Sen- 1.05624

EURUSD showed a nice pullback of more than 80 pips yesterday on easing geopolitical tension. It hit a high of 1.06164 and is currently trading around 1.05903.

Federal Reserve Chairman said on Thursday that soaring US bond yield signals the end of rate hikes. He also said that inflation remains too high and that the central bank will take necessary actions to tackle inflation. The number of people who have filed for unemployment benefits declined by 13000 to 198000 for the period ended Oct 14th, below the estimate of 210000.

According to the CME Fed watch tool, the probability of a no-rate hike in Nov increased to 99.60% from 86.70% a week ago.

 The US 10-year yield surged past 5% for the first time since July 20th, 2007 after the hawkish Fed Chairman speech. The US 10 and 2-year spread narrowed to -28.2% 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 1.04800  confirms further bearishness. A dip to 1.0440/1.0380/1.0325 is possible. The near-term resistance is around 1.0660, and any breach above targets 1.0700/1.07650/1.0800. Bullish invalidation only if it breaks below 1.0440.

   Indicator (4-hour chart)

   CCI – bullish

  Directional movement index – Bullish

It is good to sell below 1.04800 with SL around 1.05300 for a TP of 1.03500. or

Go long above 1.06300 with SL around 1.05780 for a TP of 1.07850.