Daily Analysis EURUSD - 7 July 2023

EUR/USD initially hit three-week lows but rebounded towards 1.0900 on Thursday, driven by positive US economic data and risk aversion. The Eurozone saw flat retail sales in May, while Germany reported a strong increase in factory orders. Market expectations for a rate hike by the European Central Bank in July are high. US data showed positive surprises, including a significant rise in private employment. Bond yields surged in both the US and Europe, with implications for currency markets. The EUR/USD pair faced resistance due to the strength of the US Dollar.

The EUR/USD is currently trading within a descending triangle pattern, anticipating the release of the non-farm payroll numbers, which is a significant event for the market. Yesterday, there was a surprise move following the ADP report, causing the pair to briefly touch the support level of 1.0840. However, it managed to recover and approach the resistance level of 1.0900. If the price breaks below, it is likely to head toward the next target at 1.0800. Conversely, if the trend reverses, the price may rise back toward the resistance level at 1.1000.

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
1.1046	1.1000	1.0900	1.0860	1.0840	1.0800