Daily Analysis EURUSD - 24 Aug 2023

Despite gloomy PMI data from the Eurozone and Germany last Wednesday, the pair remained resilient, fostering caution among investors seeking cues about inflation. The Eurozone's August preliminary HCOB Composite PMI fell to 47, missing the expected 48.5 and the prior 48.6. Germany's Composite PMI also dropped to 44.7, below the anticipated 48.3 and July's 48.5.

Conversely, the US released softer-than-expected preliminary PMI data the same day. The August S&P Global Composite PMI slid to 50.4 from the previous 52, exerting pressure on US Treasury yields and reinforcing USD correction.

Despite predictions of the ECB holding interest rates due to modest GDP and inflation data the prior week, the EUR/USD faces upward pressure. Lackluster US economic data reduced the chances of a September US Federal Reserve (Fed) interest rate hike.

Currently, the US Dollar Index (DXY), comparing USD against six major currencies, hovers around 103.40. Investors await insights from Fed Chair Jerome Powell and ECB President Christine Lagarde during Friday's Jackson Hole symposium for strategy cues in response to the inflationary outlook. Market players will also watch US Initial Jobless Claims and Eurozone GDP for EUR/USD trading cues.

The EURUSD rebounded from the 1.0800 level, where the 200MA and the descending parallel of the bullish channel acted as confluence support. The upcoming target is the 1.0940 resistance level, coinciding with the 100MA on the 4H timeframe and the upper parallel of the descending 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