Daily Analysis EURUSD - 3 July 2023

The text discusses factors influencing the EUR/USD pair in the market. Rising bets for a 25-basis points interest rate hike by the European Central Bank (ECB) in July provide support for the pair. However, the US Dollar (USD) is gaining strength due to the Federal Reserve's (Fed) hawkish stance, which is holding back bullish investors. The Eurozone Harmonized Index of Consumer Prices (HICP) decelerated in June, but the Core HICP increased, reaffirming expectations for more rate hikes by the ECB. The Fed's indication of potential borrowing cost increases and the likelihood of a 25-basis points lift-off in July also impact the market. The US PCE Price Index slowed down, but it remains above the Fed's target, supporting the possibility of further policy tightening. Elevated US Treasury bond yields support the USD and limit the EUR/USD pair.

In the short term, there are indications that the EUR/USD pair may be forming a descending triangle pattern, implying the likelihood of continued downward movement. At the same time, the DXY (US Dollar Index) is also displaying a third leg higher, potentially signaling a breakout above the critical resistance level at 103.40.

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
1.1080	1.1050	1.1000	1.0950	1.0912	1.0860