FxWirePro- EURUSD Daily Outlook
Ichimoku analysis (4-hour chart)
Tenken-Sen- 1.09326
Kijun-Sen- 1.08949
EURUSD pared some of its gains despite the hawkish ECB. It hit a low of 1.08954 at the time of writing and is currently trading around 1.09007.
Fed officials unanimously decided to keep the benchmark lending rate unchanged in a range of 5.25% to 5.5%. The Fed members agreed that the central bank would hike rates if incoming data was insufficient.
According to the CME Fed watch tool, the probability of a no-rate hike in Dec decreased to 95% from 99.80% a week ago.
The US 10-year yield trades weak after the hawkish rate pause. The US 10 and 2-year spread widened to -47% from -16%.
The pair trades below short-term 21 EMA, above 55 EMA, and long-term (200-EMA) in the 4-hour chart. Any break above 1.100 confirms further bullishness. A jump to 1.1070/1.1100 is possible. The near-term support is around 1.09300 and any breach below targets is 1.08900/1.0835. 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 1.0918-20 with SL around 1.0965 for a TP of 1.07800.
