Daily Analysis EURUSD - 11 July 2023

On Tuesday, the dollar experienced a decline following indications from Federal Reserve officials that the central bank was approaching the conclusion of its tightening cycle. However, the currency traded within a narrow range ahead of an important U.S. inflation report.

On Monday, several Fed officials expressed the view that the central bank would likely need to raise interest rates further in order to combat inflation, but also acknowledged that the current monetary policy tightening cycle was nearing its end.

These remarks led to a decrease in the value of the dollar, causing it to reach a two-month low of 101.71 against a basket of currencies known as the DXY during Asian trading. As a result, traders adjusted their expectations regarding the extent to which U.S. rates might still need to rise. Since the Federal Reserve initiated its tightening cycle last year, U.S. interest rate expectations have played a significant role in influencing the dollar's performance.

The EUR/USD breakout beyond the 1.1000 level is paving the way for the next levels at 1.1050 and 1.1100. The actual momentum seems healthy but tomorrow CPI may continue creating more volatility. The 1.1000 may become a new support followed by the 1.0970.

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