FxWirePro- EURUSD Daily Outlook

Ichimoku analysis (4-hour chart)

 Tenken-Sen- 1.06162

 Kijun-Sen- 1.05980

EURUSD  pared most of its gains ahead of Fed monetary policy. It hit a  high of 1.06749 yesterday and is currently trading around 1.05590.

US CB consumer confidence declined to 102.60 in Oct,  compared to a forecast of 100.50. Chicago PMI dropped to 44vs. 45 forecast.

Major Economic data for the day

Nov 1st, 2023, US ISM Manufacturing PMI (2 pm GMT)

                        Federal funds rate (6 pm GMT)

According to the CME Fed watch tool, the probability of a no-rate hike in Nov decreased to 97.70% from 99.20% a week ago.

 The US 10-year yield trades higher ahead of Fed monetary policy. The US 10 and 2-year spread narrowed to -16.7% from -75%.

The pair trades below short-term 21 EMA,  55 EMA, and long-term (200-EMA) in the 4-hour chart.  Any break below confirms further bearishness. A decline to 1.0480/1.0440 is possible. The near-term resistance is around 1.0600, and any breach above targets is 1.0700/1.0760. 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 1.0598-60 with SL around 1.0700 for a TP of 1.0440