Daily Analysis EURUSD - 14 July 2023

The US Dollar (USD) has continued its downward trend for the seventh consecutive day, driven by expectations of the Federal Reserve (Fed) soon concluding its policy-tightening measures. Investors are now strongly convinced that the US central bank will maintain interest rates at their current level for the remainder of the year, following the anticipated 25 basis points increase in July. This has resulted in a significant drop in US Treasury bond yields and has pushed the USD to a 15-month low. Consequently, this decline is considered a significant factor contributing to the strength of the EUR/USD pair.

In contrast, the minutes of the June meeting held by the European Central Bank (ECB) revealed that policymakers are determined to continue raising interest rates beyond July in order to address inflation and bring it back to the target level. It is worth noting that the ECB's economic projections in June indicated that inflation is expected to remain above the 2% target until the end of 2025. Despite emerging signs of an economic slowdown, this hawkish stance continues to bolster the euro (EUR) and provide additional strength to the EUR/USD pair.

The EUR/USD maintained its bullish momentum, reaching the 1.1245 level, which coincides with the upper parallel of the current bullish channel. The second leg of the movement is currently hovering around 3.70%, slightly higher than the previous leg's 3.50%. After this rapid bullish movement, a correction toward the 1.1100 level appears likely.

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
1.1200	1.1150	1.1100	1.1000	1.0920	1.0880