Daily Analysis EURUSD - 18 May 2023

President Joe Biden expressed confidence that the United States will not default on its debt, while House Speaker Kevin McCarthy stated that reaching an agreement this week is achievable. Following a meeting in Washington to discuss the debt limit, JPMorgan Chase & Co. CEO Jamie Dimon remarked that it is highly unlikely for the US government to default on its debt.

European Central Bank Vice President Luis de Guindos acknowledged that the ECB has largely completed its tightening measures, but there is still progress to be made. The euro showed minimal movement in response to this statement.

In terms of the economic calendar, it is worth noting that there is an upcoming speech by Lagard, which could hold significance for the markets. Additionally, ECB Vice President De Guindos will also be speaking.

From a technical standpoint, the currency pair has retraced to validate 1.0850 as a newfound resistance level, indicating a continuation of the downward movement, which suggests a healthy bearish trend. Similarly, the DXY (Dollar Index) reflects an inverse pattern, with increased buying pressure on the Dollar. Looking ahead, a significant target for EURUSD lies at 1.0750 on the 4-hourly chart, as well as the 100-day moving average (MA) on the Daily chart.

 

Res Level 3	Res Level 2	Res Level 1	Sup level 1	Sup level 2	Sup level 3
1.9000	1.0870	1.0850	1.0800	1.0750	1.07000