Daily Analysis EURUSD - 17 Aug 2023

The DXY is testing July's highs around 103.50, boosted by higher US Treasury yields and cautious market sentiment. The 10-year yield has climbed to 4.27%, while the 2-year yield hovers just below 5%. US data showed a mixed performance, and on Thursday, we expect the release of Jobless Claims and the Philly Fed report.

According to the FOMC minutes, two members advocated for maintaining rates during the July meeting, despite the central bank's decision to raise rates to 5.25% - 5.50%, the highest since 2001. Some FOMC participants voiced concerns about the potential consequences of further tightening. Overall, the message seems to align with the Fed's intention to keep rates steady in the upcoming gatherings. Subsequent to the release of the minutes, the US Dollar resumed its upward momentum.

Although the US Dollar has risen consecutively for several days, its momentum remains robust. The deterioration of market sentiment also contributes to the increased demand for the Greenback. If this trend persists, it could lead to additional losses for the EUR/USD pair.

The EURUSD is heading towards its initial support at 1.0850, followed by 1.0800 where the 200MA and the descending parallel of the bullish long channel can be found.

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