Daily Analysis EURUSD - 24 May 2023

Investors' concerns about a potential US default are growing as negotiations on the debt limit show no signs of progress. US House Speaker Kevin McCarthy's comments indicate a lack of agreement between Republicans and the White House. The absence of fresh commentary from President Joe Biden is adding to market anxiety, with Treasury Secretary Janet Yellen warning of dire consequences if funds run out by June 1. Investors are eagerly awaiting the release of the Federal Open Market Committee (FOMC) minutes for insights into the recent interest rate hike and future guidance.

The Euro saw mixed results with manufacturing contracting and services showing improvement. The focus has shifted to European Central Bank President Christine Lagarde's upcoming speech, in which she is expected to address June's monetary policy and the necessity of interest rate hikes to address Eurozone inflation.

The EURUSD pair is potentially forming a double bottom pattern, indicating a potential reversal, with the 1.0760 support level being a key factor. The next resistance levels to watch are at 1.0830 and 1.0850, particularly the upper parallel of the bearish channel. A closer look at the daily chart reveals that the price has temporarily found support at the lower parallel of the bullish channel. However, the EUR continues to face persistent downward pressure.

Res Level 3	Res Level 2	Res Level 1	Sup level 1	Sup level 2	Sup level 3
1.0900	1.0850	1.0830	1.0760	1.0700	1.0650