Ichimoku analysis (4-hour chart)
Tenken-Sen- 1.05862
Kijun-Sen- 1.05732
EURUSD showed a nice jump on upbeat market sentiment. It hit a high of 1.06253 yesterday and is currently trading around 1.06093.
The annual German CPI declined to 3.8%, below market expectations of 4%. Markets eye Eurozone CPI and GDP data for further direction.
Major Economic Data for the day
Oct 31st, 2023, Employment cost index q/q (12:30 pm GMT)
S&P/CS Composite -20 HPI y/y (1 pm GMT)
Chicago PMI and CB consumer confidence (1:45 and 2 p.m. GMT)
According to the CME Fed watch tool, the probability of a no-rate hike in Nov decreased to 98.3% from 98.9% a week ago.
The US 10-year yield declined slightly on easing geopolitical tension. The US 10 and 2-year spread narrowed to -16.20% 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 above 1.06300 confirms further bullishness. A jump to 1.0700/1.0760 is possible. The near-term support is around 1.0545, and any breach below targets 1.04800/1.04400. Bullish invalidation only if it breaks below 1.0440.
Indicator (4-hour chart)
CCI – bullish
Directional movement index – Neutral
It is good to buy above 1.06300 with SL around 1.0575 for a TP of 1.0800
