FxWirePro- EURUSD Daily Outlook

Ichimoku analysis (4-hour chart)

 Tenken-Sen- 1.05489

 Kijun-Sen- 1.06078

EURUSD trading flat amid dovish ECB. It hit a low of 1.05211 yesterday and is currently trading around 1.05562.

European Central Bank has kept its rates unchanged at 4%. The central bank also pointed out that inflation is slowly coming down to its target of 2%.

US GDP grew at an annualized rate of  4.9% in the third quarter, compared to a forecast of 4.50%. US durable goods orders rose 4.7% m/m due to a surge in aircraft sales vs an Estimate of 1.9%.

Major Economic data for the day

Oct 27, 2023, Core PCE price index m/m (12:30 pm GMT)

                          Revised UoM consumer sentiment (2:00 pm GMT)

According to the CME Fed watch tool, the probability of a no-rate hike in Nov increased to 99.5% from 97.60% a day ago.

 The US 10-year yield pared some of its gains despite strong US GDP data. The US 10 and 2-year spread narrowed to -19.20% 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 decline to 1.0440/1.0380 is possible. The near-term resistance is around 1.0565, and any breach above targets 1.0600/1.0660/1.0700. Bullish invalidation only if it breaks below 1.0440.

   Indicator (4-hour chart)

   CCI – bearish

  Directional movement index – Neutral

It is good to sell on rallies around 1.0565-68 with SL around 1.0620 for a TP of 1.04850.