FxWirePro- EURUSD Daily Outlook

Ichimoku analysis (4-hour chart)

 Tenken-Sen- 1.08588

 Kijun-Sen- 1.07718

EURUSD showed a minor sell-off despite weak US PPI data. It hit a low of 1.08315 yesterday and is currently trading around 1.08498.

US PPI rose 1.3% YoY in Oct, compared to a forecast of 2.2%. The annual core PPI surged 2.4% in Oct vs. Forecast of 2.70%. US retail sales dropped 0.10% in Oct from the previous month's 0.90%. Empire State manufacturing index improved to 9.1 in Nov from -4.2 in Oct.

Major Economic Data for the day

Nov 16th, 2023, US Initial jobless claims (1:30 pm GMT)

                           Philly Fed Manufacturing Index

According to the CME Fed watch tool, the probability of a no-rate hike in Dec increased to 100% from 90.2% a week ago.

 The US 10-year yield showed a minor pullback on weak US PPI. The US 10 and 2-year spread widened to  -39.5% from -16%.

The pair trades above short-term 21 EMA,   55 EMA, and long-term (200-EMA) in the 4-hour chart.  Any break above 1.0900 confirms further bullishness. A jump to 1.0948/1.1000 is possible. The near-term support is around 1.08300 and any breach below targets is 1.0765/1.0700. Bullish invalidation only if it breaks below 1.0440.

   Indicator (4-hour chart)

   CCI – bullish

  Directional movement index – bullish

It is good to buy on dip around 1.0800 with SL around 1.0760 for a TP of 1.1000.