EURUSD @ 1.03368 – Support/Resistance analysis: fails at 1.0365 and retreats as DXY trims losses

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EURUSD @ 1.03368 – Support/Resistance analysis: fails at 1.0365 and retreats as DXY trims losses

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• US July PPI drops unexpectedly in July while jobless claims hit monthly highs.
• The dollar remains in negative territory, even as US yields rise.
• EUR/USD up for the fifth consecutive day, holds under Wednesday’s top.

The pair currently trades last at 1.03368.

The previous day high was 1.0369 while the previous day low was 1.0202. The daily 38.2% Fib levels comes at 1.0305, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0266, expected to provide support.

The EUR/USD failed to break Wednesday’s highs around 1.0355 and pulled back. It is hovering around 1.0325 as the US dollar attempts to recover during the American session as US yield surge.

Data released on Thursday showed the Producer Price Index in the US dropped by 0.5% in July, and the annual rate slid to 9.8%, against expectations of a 0.2% advance. On Wednesday, it was reported the Consumer Price Index was unchanged in July against expectations of a 0.2% gain. On Thursday, a report from US Labor Department informed Initial Jobless Claims rose to 262K in the week ended August 6, the highest level since November. Continuing Claims hit monthly highs.

US yields are rising sharply despite the signs of a slowdown in inflation. Market participants continue to see an increase in the Fed Fund rate at the next meeting by at least 50 basis points. The US 10-year yield stands at 2.84%, the highest in almost a week, while the 30-yield is at the highest level since July 21 at 3.10%. The US Dollar Index is falling for the fourth consecutive day trading around 105.00, after finding support again above 104.60.

The EUR/USD peaked at 1.0363 after the beginning of the American session, slightly below yesterday’s high. It failed to break and retreat. So far it found support at 1.0320. A break lower would expose the next support at 1.0305, followed by the daily low at 1.0274. The technical outlook looks bullish as long as EUR/USD holds above 1.2060/80.

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.0351 at the time of writing. Pair opened at 1.03 and is trading with a change of 0.5 % .

The pair is trading above its 20 Daily moving average @ 1.0188, above its 50 Daily moving average @ 1.0346 , below its 100 Daily moving average @ 1.0539 and below its 200 Daily moving average @ 1.0909

The previous day high was 1.0369 while the previous day low was 1.0202. The daily 38.2% Fib levels comes at 1.0305, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0266, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.0212, 1.0124, 1.0045
• Pivot resistance is noted at 1.0378, 1.0457, 1.0545

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