Daily Analysis EURUSD - 3 Aug 2023

The US government's top credit rating was downgraded by Fitch to AA+ from AAA. This decision angered the White House and surprised investors since the debt ceiling crisis had been resolved two months prior. Fitch cited fiscal deterioration over the next three years and concerns about repeated last-minute debt ceiling negotiations jeopardizing the government's ability to meet its financial obligations.

Private payrolls data that showed US companies added 324,000 workers last month, beating the consensus forecast of 190,000. Investors also reacted to news that the Treasury will issue $103 billion of securities next week, slightly more than forecast, and fresh on the heels of Fitch Ratings’ downgrade of the US.

Regarding the Eurozone PMI, the latest report indicates minimal change, with the headline staying at 42.7, and Germany's at 38.8. However, there was positive news in Germany's unemployment rate, which fell to 5.6% in July. Despite this, the interest rate market indicates that the likelihood of another rate hike from the European Central Bank (ECB) remains below 40%.

The EUR/USD continues to experience a selloff as the dollar benefits from positive economic data. The current support level is around 1.0900, followed by the 1.0850 level, which holds historical significance. Additionally, the 100MA on the 1-day chart may act as support for the time being.

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
1.1140	1.1090	1.1050	1.0950	1.0900	1.0850