Daily Analysis EURUSD - 6 Sep 2023

The EUR/USD pair retreated from 1.0730 after disappointing German data, struggling amid European recession concerns versus US economic hopes. Cautious sentiment prevailed ahead of Eurozone Retail Sales for July and US ISM Services PMI for August.

German Factory Orders plunged with a YoY drop of -11.7% (vs. -4.0% expected) and a monthly decline of -10.5%. Eurozone Producer Price Index (PPI) for July added to the gloom.

The US Dollar held its ground despite lower yields, buoyed by robust US Factory Orders, upbeat comments from Federal Reserve officials, and a hawkish stance. Concerns about China's real estate sector supported property shares, counteracting previous risk aversion.

US and European stock futures showed mild losses, while the US Dollar Index (DXY) hovered near 104.80.

EURUSD found support near the 1.0700 level. A potential correction may occur after reaching this level, but the overall trend remains bearish, with more pressure on euro expected to continue, as the US Dollar is fundamentally stronger and leading among the major currencies.

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
1.1090	1.1050	1.1000	1.0850	1.0800	1.0700