Daily Analysis EURUSD - 20 July 2023

The German producer prices recorded a year-on-year increase of 0.1% in June, according to the Federal Statistical Office's report on Thursday. This figure slightly exceeded the expectations of analysts, who were anticipating no change in annual prices. Additionally, recent data on CPI for the EU, as well as Germany, indicates that inflation remains persistent, particularly in the core measure, which rose to 5.5% in June from 5.3% in May. As a result, the ECB will likely implement another rate increase in its upcoming meeting.

Yesterday's reports on both building permits and housing starts in the US for June fell below expectations, raising concerns about a possible slowdown in the housing market. Moreover, today's release of the Philadelphia Fed Manufacturing Index and Initial Jobless Claims will provide insights into the current state of the labor market, which appears to be steady, and the manufacturing activity, which seems to be showing signs of slowing down.

The EUR/USD has shown a concentration of price and formed a bearish pattern, signaling a potential correction. The target for this correction is expected to be the 1.1150 level, followed by the 1.1100 level. Additionally, on the daily chart, we can observe 3 Dojis, further confirming the likelihood of a correction.

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
1.1400	1.1300	1.1250	1.1200	1.1500	1.1000