Ichimoku analysis (4-hour chart)
Tenken-Sen- 1.06928
Kijun-Sen- 1.07078
EURUSD showed a sell-off amid hawkish Powell's speech. It hit a low of 1.06540 and is currently trading around 1.06710.
Fed Chairman Powell said at an event hosted by the IMF "If it becomes appropriate to tighten policy further, we will not hesitate to do so,"
The number of people who have filed for unemployment benefits in the week ending Nov 4th decreased by 3000 to 217000, above the forecast of 218000.
Major Economic data for the day
Nov 10 th 2023, Prelim UoM consumer sentiment (3:00 pm GMT)
According to the CME Fed watch tool, the probability of a no-rate hike in Nov increased to 85.4% from 80% a week ago.
The US 10-year yield lost more than 10% from the multi-week top. The US 10 and 2-year spread widened to -44% from -16%.
The pair trades above short-term 21 EMA, 55 EMA, and long-term (200-EMA) in the 4-hour chart. Any break below 1.0660 confirms further bearishness. A decline to 1.0600/1.0550 is possible. The near-term resistance is around 1.0720 and any breach above targets is 1.0765/1.0835. Bullish invalidation only if it breaks below 1.0440.
Indicator (4-hour chart)
CCI – bullish
Directional movement index – neutral
It is good to sell on rallies around 1.0700-025 with SL around 1.0760 for a TP of 1.0440.
