Daily Analysis EURUSD - 16 Aug 2023

The Eurozone is expected to release economic data on Wednesday, including preliminary Q2 GDP figures which are anticipated to show minimal growth of 0.2%, along with potentially negative industrial production data. Although economists are leaning towards a pause in European Central Bank rate hikes in September, concerns arise within the EU due to persistent inflation and concerning economic data from Germany, indicating a possible slowdown in Europe's largest economy. Concurrently, the upcoming Federal Reserve minutes are anticipated to attract attention as market participants seek deeper insights into the Fed's decision-making process. On Tuesday, U.S. retail sales unexpectedly surged, showcasing resilient consumer spending and strengthening the argument for continued Fed tightening. This viewpoint was further underscored by Minneapolis Fed President Neel Kashkari, who remarked that while inflation is declining, it remains elevated.

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