Daily Analysis EURUSD - 17 July 2023

The euro has gained significant strength due to the European Central Bank (ECB) expected to continue raising interest rates beyond July, as inflation in the Eurozone remains high. Headline inflation in the region currently stands at 5.5%, while core inflation, which excludes volatile oil and food prices, is at 5.4%. These figures are significantly higher than the desired rate of 2%.

The USD Index is anticipated to show strong movement following the release of the US Retail Sales data. According to consensus forecasts, monthly retail demand is expected to grow at a faster pace of 0.5% compared to the previous release of 0.3%. Retail demand, excluding automobiles, is projected to expand by 0.3%, an improvement from the previous release of 0.1%.

The EUR/USD encountered resistance near the upper boundary of the existing bullish channel at the 1.1250 level. There is a potential for a correction to occur, which could cause the price to move towards the 1.1150 level.

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