Daily Analysis EURUSD - 1 Aug 2023
Eurozone HICP in July rose by 5.5% YoY, and headline CPI increased by 5.3%. Q2 Eurozone GDP grew by 0.3% QoQ and 0.6% YoY. German Retail Sales in June rose by 1.6% YoY, beating expectations. The European Central Bank raised interest rates to 4.25% but hinted at a possible pause in September due to easing inflationary pressures. In the US, the PCE Price Index fell to 3% in June, and the Core PCE Price Index dropped to 4.1% YoY. The US Dollar strengthened to 102.00 on Tuesday, despite softer US inflation data. Market participants will focus on global Manufacturing PMI and Germany's Unemployment rate. The US Nonfarm Payrolls report on Friday is expected to show 180,000 new jobs and a 3.6% employment rate.
The EUR/USD, after yesterday's correction, encountered resistance at the 1.1045 level and is currently continuing the selloff, now in the downtrend of the long bullish channel. The DXY is also touching the resistance area at 102. On a daily basis, the 100MA serves as the next target for EURUSD at 1.0900.
Resistance 3 |
Resistance 2 |
Resistance 1 |
Support 1 |
Support 2 |
Support 3 |
1.1140 |
1.1090 |
1.1050 |
1.0950 |
1.0900 |
1.0850 |