Daily Analysis EURUSD - 7 Aug 2023

German industrial production dropped by 1.5% in June, surpassing the predicted 0.5% decline, according to data from the federal statistics office. The manufacturing sector in Europe's largest economy is facing challenges amid a downturn. It's expected that the German economy will contract again in the second half of 2023 following a winter recession that ended in the second quarter.

US employment data showed steady JOLTS Job Openings at around 9.6 million in June, with the private sector adding 324K new jobs in July according to the ADP survey. Challenger Job Cuts declined to 23.7K in the same month, and Initial Jobless Claims stood at 227K in the week ending July 28. Preliminary estimates indicated a 3.7% rise in Q2 Nonfarm Productivity and a 1.6% increase in Unit Labor Costs.

In the July Nonfarm Payrolls (NFP) report, the unemployment rate decreased to 3.5% with a participation rate of 62.6%. The US added 187K new jobs in the month, and average hourly earnings rose 4.4% YoY, higher than expected. The US Dollar slightly declined, but the job growth suggests a cooling sector while a shrinking unemployment rate may lead the Federal Reserve (Fed) to maintain its monetary tightening policy.

The EUR/USD corrected towards 1.1040 after Friday's movement and encountered a resistance level. It is now resuming its downward trend, respecting the down channel. The next support levels are 1.0920 and 1.0850. The 100MA on the daily chart is also playing support at the actual levels.

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
1.1090	1.1050	1.1000	1.0950	1.0900	1.0850