Daily Analysis EURUSD - 22 Aug 2023

US Federal Reserve Chair Jerome Powell's upcoming speech at the central bankers' meeting may bring an updated economic assessment. Strong industrial production, retail sales, and housing starts suggest higher July inflation, potentially leading to tightening. Powell might emphasize a data-dependent approach. With USD positioning slightly long, a balanced assessment could prompt unwinding.

Economists predict Eurozone's current account shift from €11.3B deficit to €22.0B surplus, bullish for EUR/USD. Investors should explore underlying factors driving the change amid weak demand.

Today's focus is the US Housing Sector. Despite a 7.09% mortgage rate, wage growth, labor market strength, and consumer confidence counter housing sales decline fears.

The anticipated 0.5% drop in existing home sales follows June's 3.3% slide. Lower mortgage rates could boost demand as NAR sees insufficient inventories for pent-up demand.

Consider FOMC comments pre-Jackson Hole Symposium. Powell's surprises could sow uncertainty. FOMC's Barkin, Bowman, and Goolsbee speak; Bowman and Goolsbee hold more sway.

Light Eurozone calendar, ECB commentary key. No ECB Executives today; media may influence. Investors liked ECB Chief Economist's podcast, urging Eurozone to avert a severe downturn. A strong US economy might lead ECB to cut rates before the slowdown.

The EURUSD confirms the potential for a reversal and is currently heading toward its next resistance at 1.0950. The 100MA on the 4H chart is expected to contribute to a confluence point with the upper parallel of the downward channel.

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