Daily Analysis EURUSD - 8 Aug 2023

In Germany, the annual inflation rate for July 2023 was officially confirmed at 6.2%. This figure was slightly lower than the 6.4% observed in the previous month and remained close to the 14-month low of 6.1% recorded in May. These numbers indicated a gradual cooling of inflationary pressures within the country. However, the rate continued to significantly surpass the European Central Bank's target of 2.0 percent. Notably, the overall inflation for goods decelerated to 7.0% from 7.3%, primarily due to softer increases in the cost of food, as well as services. The inflation eased slightly (5.2% vs 5.3%).

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 is hovering around the 1.1000 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