Daily Analysis EURUSD - 5 July 2023

Today's economic calendar holds significant importance for the EURUSD direction. We anticipate the release of Europe Services PMI numbers from various countries, all of which are expected to show contraction. Notably, the Spanish PMI has already reported lower than expected figures, despite remaining in expansion territory. These indications point to a slowing economy in Europe, with both manufacturing and services sectors showing reduced activity. Consequently, concerns about a potential recession are causing anxiety in the markets, with uncertainties regarding its timing and severity.

Additionally, the United States is scheduled to release factory orders data for May. However, the main focus will undoubtedly be on the minutes of the Federal Reserve's June meeting. The meeting resulted in a temporary pause in tightening policies, while also revising the outlook to include two more anticipated rate hikes.

The EUR/USD pair remains within a descending triangle pattern, indicating a continued likelihood of downward pressure for the pair. Simultaneously, the DXY (US Dollar Index) is currently forming a third leg higher, which suggests a possible breakout above the significant resistance level at 103.40. It is crucial to consider the fundamentals as the primary determining factor for any potential upward or downward movements today and in the coming days.

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
1.1046	1.1000	1.0960	1.0860	1.0840	1.0800