Daily Analysis EURUSD - 7 Sep 2023

The EUR/USD hit a recent low for the past three months but managed to stay above the 1.0700 level. The strength of the US dollar is supported by both US economic data and risk aversion sentiments. Meanwhile, Germany's industrial output continued its decline in July, which is a significant challenge for the largest economy in the Eurozone. There are concerns about the possibility of a recession as further industrial production figures for Germany are expected today.

In the US, the ISM Manufacturing PMI surpassed expectations, giving a boost to the US dollar. Following this data release, the EUR/USD reached its lowest point at 1.0702 but later recovered slightly, reaching 1.0730. The overall economic performance of the United States remains a crucial factor in the strength of the US dollar, especially in the context of prevailing risk aversion. Additionally, there are upcoming data releases in the US, including Jobless Claims and Unit Labor Cost data, scheduled for Thursday.

The selling pressure on EUR/USD persists, even though the price stability around the 1.0700 area appears to be holding. The strength of the US dollar is the primary driver behind this downward movement in major currencies followed by recession fears in other western Economies. The next support levels to watch for are approximately 1.0670, followed by 1.0600, and the historical support is located at the 1.0500 area.

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
1.1090	1.1050	1.1000	1.0700	1.0600	1.0500