Daily Analysis EURUSD - 15 Aug 2023

The EUR/USD pair rebounded from its recent low of 1.0875, rising to around 1.0925, marking a 0.17% gain during the day. The upcoming US Retail Sales data is anticipated to cause volatility in the pair. Germany's Wholesale Price Index for July showed a slight increase from -2.9% to -2.8% YoY, below the expected -2.6%. The ECB's Economic Bulletin, however, suggests lingering uncertainty in Eurozone inflation and economic growth. Fed San Francisco President Mary C. Daly's remarks indicate a cautious stance on rate increases, influencing the Euro's upward potential and affecting EUR/USD. Market focus shifts to US Retail Sales, with expectations of a 0.4% MoM rise in July. There's a rising likelihood of a 25-basis point rate hike in the November Fed meeting. Additionally, upcoming events include Eurozone GDP Q2, Harmonized Index of Consumer Prices MoM for July, and the FOMC Minutes, which could provide further direction for the market.

The EUR/USD touched an important support level and formed a possible reversal pattern that the DXY is confirming too. The next resistance will be the 1.1000 level where also the upper parallel of the downtrend with the 100/200MA, making a solid confluence point.

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