Daily Analysis EURUSD - 21 Aug 2023

China's economic focus today is on the PBoC's 10 basis point reduction in the one-year loan prime rate, deviating from the anticipated 15 basis point decrease for both one-year and five-year rates. To alleviate market concerns, China must implement a substantial stimulus, potentially impacting the EUR/USD negatively. German producer prices fell due to weak demand and competitive order attraction, influencing inflation and escalating recession risks. The direction of the EUR/USD pair depends on the ECB's stance and upcoming PMI data. With no significant US indicators, attention turns to Fed communication, especially surrounding the Jackson Hole Symposium. Market risk sentiment and the dollar's safe-haven demand are crucial considerations.

The EURUSD is approaching 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. A possible reversal may occur if the data supports it.

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