Daily Analysis EURUSD - 12 July 2023

The USD Index has been declining for four consecutive days, indicating investor expectations of only one more interest rate hike from the Federal Reserve (Fed) by the end of the year. Investors are anticipating inflation data, with analysts predicting a 0.3% monthly increase in both headline and core CPI inflation for June. However, the Fed needs to see a slowdown in core services and softer labor market conditions to be confident in reaching its 2% inflation target. In the Eurozone, German inflation is at 6.8%, leading the European Central Bank (ECB) to consider further interest rate hikes to control inflation. ECB President Christine Lagarde has already expressed the necessity of raising interest rates to address persistent inflation pressures.

The EUR/USD continue the bullish trend and reached the 1.1400 level as waiting for more momentum to reach the 1.1100 historical resistance level.  Today Dat may help or not the EURUSD continue up but the actual long bullish trend is healthy and strong.

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
1.1100	1.1085	1.1040	1.1000	1.0920	1.0880