Daily Price Outlook

The AUD/USD currency pair was unable to stop its losing streak and remained depressed around below 0.6400 mark. However, this decline can be attributed to the recent smaller rate cut by the People’s Bank of China (PBoC), indicating limited support for the economy despite worries about the property market crisis. This uncertainty has left investors hesitant, leading to a decline in the riskier Australian Dollar. In the meantime, the weakening sentiment has also impacted markets, putting additional pressure on the AUD. Furthermore, the stronger US Dollar, supported by the potential for a Fed interest rate hike, was also contributing to the downward pressure on the AUD/USD pair.

US Dollar Strength and Factors Affecting AUD/USD Pair

The broad-based US dollar, tracked by the USD Index (DXY), is staying just below its highest level in over two months due to the Federal Reserve's likely plans to raise interest rates. However, the recent minutes from the July meeting of the Federal Open Market Committee (FOMC) show they're focused on controlling inflation. Furthermore, the US economy is doing well, according to recent data, supporting the idea that the Fed might tighten policy more.

At the same time, the expectation that the US central bank will keep rates higher for a while is keeping US Treasury bond yields up and helping the US dollar. This suggests the AUD/USD pair will likely continue to fall. However, traders who are expecting a drop might not make big bets before the Jackson Hole Symposium this week. Central bankers' comments there could cause a lot of ups and downs in the markets.

AUD/USD - Technical analysis

The AUD/USD pair maintains its fluctuation around the 0.6400 level, encountering challenges in achieving a decisive breakthrough. It is worth noting that the stochastic indicator is once again indicating a loss of positive momentum.

This development is anticipated to contribute to propelling the price towards a successful breach of this level, subsequently extending the decline on both the intraday and short-term scales. It is important to highlight that our next identified target stands at 0.6310.

Consequently, our outlook continues to lean towards a bearish trajectory for the forthcoming period, provided the price remains stable below the 0.6440 threshold. The projected trading range for the day spans between the support at 0.6350 and the resistance at 0.6450.

In terms of the anticipated trend for today, a bearish sentiment prevails.

Daily Price Outlook

The Gold Price (XAU/USD) has taken a pause from its recent decline, breaking away from the lowest levels it reached over the past five weeks. However, the pause in the decline could be attributed to a few factors. Firstly, there's been a decrease in the yields of US Treasury bonds, which tends to support the value of gold.

Furthermore, the US Dollar has been weakening, and this too has played a role in gold's recent uptick. Moreover, there's a sense of optimism surrounding potential stimulus actions from China. This hopeful outlook about China's potential economic support has positively influenced the gold price, contributing to its recent improvement.

However, it's worth noting that US bond yields are still facing pressure, having come very close to hitting a multi-year high just the day before. On a related note, the US Dollar Index (DXY) is finding stability after a streak of four consecutive weeks of gains. This steadying of the US Dollar's performance aligns with the upcoming Jackson Hole Symposium, an annual event where influential central bankers share their insights. The anticipation of this event is playing a role in shaping the current state of the market.

Evergrande's Bankruptcy Filing Sparks Market Concerns, Impact on Gold Price

China's second-largest real estate company, Evergrande, is in big financial trouble due to a lot of debt. They asked a US court for help, worrying about the economy. Some think China might help, calming worries. Gold's price went up a bit but isn't doing well. People who sell gold think it'll drop more, maybe below $1,900. Gold had a small recovery, but won't last. It's not high enough for a big rise. Sellers hope it drops more. Evergrande's problems shook the market, and there's debate about China's support. Gold's brief rise might reverse, giving sellers hope for a bigger fall.

GOLD (XAU/USD) - Technical analysis

The gold price continued its downward movement in the previous session, reaching the level of $1885.00. This reinforces the prevailing outlook of a persistent bearish trend, with the subsequent target positioned at $1873.50.

Anticipated trading activity for the present day is projected to fluctuate within the range of support at $1873.50 and resistance at $1905.00.

Daily Price Outlook

The GBP/USD currency pair stopped its three-day winning trend and is currently around 1.2720 on Friday. This is happening because retail sales data from the UK, showing weaker numbers, has pushed the pair down. Furthermore, there is a caution sentiment due to increased risk aversion, strong US Treasury yields, and ongoing economic issues in China, all of which are putting pressure on GBP/USD.

These factors might make the US Dollar stronger and could affect the direction of the pair. Traders might be more careful after UK inflation numbers, which were released on Wednesday. These numbers have already boosted the pair, and there's worry they might lead the Bank of England (BoE) to consider raising interest rates in their September meeting.

UK Retail Sales Drop More Than Expected, Pressuring GBP/USD

According to the latest data from the Office for National Statistics (ONS), UK Retail Sales took a 1.2% tumble in July compared to the expected decrease of 0.5%. This decline follows a 0.6% growth in the previous month. The Core Retail Sales, which excludes car fuel sales, also saw a drop of 1.4% in July, worse than the anticipated decrease of 0.7%.

On a yearly basis, Retail Sales went down by 3.2% in July, more than the expected 2.1% decrease, while Core Retail Sales fell 3.4%, surpassing the expected 2.2% drop. These disappointing numbers have pushed GBP/USD to test daily lows around 1.2725, trading at 1.2727 with a 0.09% decline for the day.

US Dollar Pulls Back Despite Positive Data; Market Cautious About Inflation Clues

The broad-based US dollar is giving back some of its recent gains. The DXY, which tracks the dollar against major currencies, is hovering around 103.40. However, this retreat comes despite better US data, creating caution in the market as it looks for more clues about inflation. For instance, Initial Jobless Claims for the week ending on August 11 decreased to 239K from the previous 250K, slightly beating the expected 240K. Meanwhile, the Philadelphia Fed Manufacturing Survey for August showed improvement, rising to 12 from the earlier -13.5, higher than the anticipated -10.

Key Data Releases and Jackson Hole Symposium Await in the Upcoming Week

Looking forward to the next week, investors will keep an eye on important data releases in the US and the UK. In the US, Home Sales figures and early S&P Global PMI surveys for August will be in focus. Similarly, the UK will release its PMI survey and GfK Consumer Confidence data for August. These numbers will give us a clearer picture of how both economies are doing and could influence decisions about trading the GBP/USD pair.

GBP/USD - Technical analysis

The GBP/USD pair has successfully breached the resistance line of the bearish channel and established itself above it, signaling an attempt to achieve intraday gains. However, it's noteworthy that the stochastic indicator has shifted from positive momentum to a negative overlap, indicating the potential for a resumption of the corrective bearish trend. This trend is directed towards the 1.2625 region as the next key target.

As a result, it is anticipated that the upcoming trading sessions may witness downward movement. To facilitate progress towards the aforementioned target, a breakthrough of the 1.2725 level is crucial. Conversely, surpassing the 1.2825 threshold would halt the negative projection and prompt a reversal towards higher levels.

The projected trading range for today is expected to be positioned between the support at 1.2660 and the resistance at 1.2825.

Daily Price Outlook

The EUR/USD currency pair managed to halt its recent losses and started gaining momentum, hovering above the range of 1.0885 to 1.0890. It rose by 0.15% over the course of the day. However, the reason for its upward rally could be attributed to the slight decrease in the value of the US dollar. The broad-based US dollar is losing traction and remains sluggish for the second successive day in the wake of retreating US Treasury bond yields and cautious stance ahead of the upcoming Jackson Hole Symposium. This turned out to be a key factor lending some support to the EUR/USD pair.

In contrast to this, the Federal Reserve's more hawkish stance on interest rates might prevent a significant decline in the USD and limit the gains for the EUR/USD pair. Looking forward, traders are focusing on a speech scheduled by the European Central Bank's (ECB) Lane, as well as the final Euro Zone Consumer Price Index (CPI) figures. These events are expected to provide additional momentum and direction for the currency pair.

US Dollar Trends, Fed Expectations, and Economic Conditions

The broad-based US Dollar has been under pressure for two consecutive days due to lower US Treasury bond returns. This has given some support to the EUR/USD pair, indicating the Euro's relative improvement against the Dollar. However, there's a growing belief that the US Federal Reserve will maintain higher interest rates for an extended period.

This sentiment had driven the yield on the primary 10-year US government bond to its highest point in ten months on Thursday. Although US consumer prices saw a moderate rise in July, the struggle to achieve the Fed's 2% target and concerns about global economic conditions persist.

Market Focus and Expectations for EUR/USD

Furthermore, there is talk that the European Central Bank (ECB) could pause its streak of raising interest rates nine times in a row by September. This could prevent the EUR/USD pair from rising much more. So, it's wise to wait for clear signs of strong buying before thinking the recent drop over the last month is over and expecting more gains.

Meanwhile, the final Euro Zone CPI numbers and Lane's speech could change how the Euro does against the Dollar. On the other side, there's no important economic info coming from the US on Friday, so the Dollar will be affected by how US bond yields change.

EUR/USD - Technical analysis

The EUR/USD pair is currently hovering around the 1.0880 mark, and its recent closure beneath this level sustains the bearish outlook for the foreseeable future. The subsequent target is set at 1.0785.

The influence of the EMA50 remains bearish, exerting downward pressure on the price and reinforcing the projected downtrend. This assessment is further supported by the presence of a double top pattern on the chart. It's noteworthy that a solid consolidation above 1.0880 would negate the negative scenario and potentially initiate a recovery phase, with an initial target at the 1.0955 level.

For the current day, the expected trading range spans between the support at 1.0790 and the resistance at 1.0950.

Daily Price Outlook

Despite the upbeat Eurozone data, the EUR/USD currency pair failed to stop its past five-day losing streak and remained well offered around the 1.0863 level. This marked a 0.14% decline for the day. The Euro's struggle to gain traction came despite positive economic indicators in the Eurozone, likely due to lingering uncertainty about future economic growth and inflation.

Meanwhile, the US dollar continued to show strength, exerting downward pressure on the EUR/USD pair. Hence, the combination of upbeat US data and the potential for further tightening measures from the Federal Reserve remains the driving force behind the strength of the US Dollar.

Positive Eurozone Data Fails to Lift Euro Amid Growth and Inflation

According to the latest updates, Eurozone's second-quarter Gross Domestic Product (GDP) matched expectations, showing a 0.3% growth and 0.6% increase YoY. Good news also came from June's Industrial Production, which improved by 0.5% compared to an expected -0.1%. This positive trend continued as Industrial Output rose by 0.5%, defying the predicted 0.1% drop.

Earlier this week, the Eurozone ZEW Survey for August indicated better economic sentiment at -5.5, surpassing the estimated -12 and the previous -12.2. Germany's ZEW Survey for August also improved to -12.3, beating expectations. Despite these positive signals, the Euro struggled against other currencies due to lingering doubts about economic growth and inflation.

US Dollar Gains Momentum Amid Positive Data and Fed Tightening Speculations

Furthermore, the US Dollar's strength is mainly being driven by positive data and the potential for the Federal Reserve (Fed) to tighten its policies further. Notably, US Industrial Production saw a 1.0% increase in July, beating the expected 0.3% rise and the previous 0.8% drop. Building Permits also went up to 1.44 million, and Housing Starts jumped to 1.45 million from June's 1.39 million, surpassing the projected 1.48 million.

These better-than-expected figures contributed to the USD's strength. Moreover, the recent Federal Open Market Committee (FOMC) Minutes highlighted concerns about persistently high inflation. Fed officials recognized notable inflation risks and discussed potential additional monetary policy tightening to bring inflation in line with targets. In light of these developments, the Euro struggled against the US Dollar, creating a challenge for the EUR/USD pair.

EUR/USD - Technical analysis

In a comprehensive assessment of gold's market trajectory, the precious metal has demonstrated a pronounced downturn, successfully reaching our initial anticipated benchmark at $1892.00. Currently, gold is exerting pressure on this level, aiming to validate its break beneath it. This augments the likelihood of persisting in a bearish trend, with potential descent aiming towards the subsequent target of $1873.50.

In light of these dynamics, our outlook remains bearish for the foreseeable horizon, underscored by the downward impetus provided by the 50-Day Exponential Moving Average (EMA50). It is paramount to observe that any breach of the $1905.00 level, succeeded by the $1913.15 benchmark, would arrest the anticipated decline, potentially pivoting the metal's trajectory towards an ascent.

For the day's trading landscape, we project gold's valuation to oscillate between a support threshold of $1875.00 and a resistance cap of $1905.00.

Daily Price Outlook

Gold price (XAU/USD) has been facing selling pressure and touches a fresh multi-month low, dropping below $1,900 level. However, this drop can be attributed to the strong performance of the US Dollar, which is gaining strength due to expectations of additional interest rate increases by the Federal Reserve. Interestingly, despite this situation, the current cautious atmosphere in the market, where investors are favoring safe-haven assets, might provide some support to XAU/USD and help minimize its losses.

US Dollar's Strength Puts Pressure on Gold Amid Inflation Battle

The US Dollar (USD) is steadily gaining strength, all thanks to the strong position taken by the Federal Reserve (Fed). Unfortunately, this is posing a bit of a challenge for Gold prices. In the recent meeting, the Fed's discussions on interest rate hikes showed some differences of opinion, but the main focus remains on taming inflation.

According to the latest data, consumer prices in the US went up slightly in July, as shown by the Consumer Price Index (CPI). Additionally, the Producer Price Index (PPI) also increased, indicating ongoing efforts to manage inflation. Consequently, Gold is finding it challenging due to the USD's strength gaining more attention, which is dimming its usual attractiveness.

Upbeat US Economic Data Weighs Down Gold Amid Rising Treasury Yields

Furthermore, the most recent data on US Retail Sales painted a positive picture, showing strong consumer spending throughout July. The broader economic indicators for the US, such as Housing Starts and Industrial Production, are also robust, underlining the economy's resilience. This, in turn, creates space for potential interest rate increases within the year.

These circumstances contribute to higher US Treasury yields, which in itself reduce the appeal of Gold – a precious metal that doesn't provide interest. Consequently, this surge in the US Dollar weakens demand for commodities like Gold (XAU/USD), intensifying the challenges faced by Gold.

China's Economic Concerns Impact Gold's Outlook

On top of that, concerns about China's deteriorating economy are causing people to shy away from riskier investments. This is reflected in somewhat weaker stock market performance, causing traders to avoid risky bets and turn towards the safety of Gold. This, in a way, does offer some support to Gold prices.

GOLD (XAU/USD) - Technical analysis

In a comprehensive assessment of gold's market trajectory, the precious metal has demonstrated a pronounced downturn, successfully reaching our initial anticipated benchmark at $1892.00. Currently, gold is exerting pressure on this level, aiming to validate its break beneath it. This augments the likelihood of persisting in a bearish trend, with potential descent aiming towards the subsequent target of $1873.50.

In light of these dynamics, our outlook remains bearish for the foreseeable horizon, underscored by the downward impetus provided by the 50-Day Exponential Moving Average (EMA50). It is paramount to observe that any breach of the $1905.00 level, succeeded by the $1913.15 benchmark, would arrest the anticipated decline, potentially pivoting the metal's trajectory towards an ascent.

For the day's trading landscape, we project gold's valuation to oscillate between a support threshold of $1875.00 and a resistance cap of $1905.00.

Daily Price Outlook

The AUD/USD pair extended its eighth consecutive day of decline due to disappointing Australian employment data and overall market caution. This led to a 0.39% drop, bringing the pair to 0.6367. The weak jobs data has raised concerns about potential interest rate changes by the Reserve Bank of Australia (RBA) in their September 5 meeting. Moreover, concerns about China's economy and the hawkish stance of the Federal Open Market Committee (FOMC) are further pressuring AUD/USD prices.

Challenging Australian Job Market Data Impacts AUD/USD Pair

According to the recent info from the Australian Bureau of Statistics (ABS), Australia's job market struggled in July. The Unemployment Rate unexpectedly rose to 3.7%, exceeding both expectations and the previous month's 3.5%. Employment Change was also disappointing, with a loss of 14.6K jobs, in contrast to the anticipated 15K increase and June's 32.6K additions. Detailed data showed a decline of 24.2K Full-Time Employment roles, while Part-Time Employment grew by 9.6K. In response, the AUD/USD pair declined by 0.39% to trade at 0.6367, indicating concerns about future decisions by the Reserve Bank of Australia (RBA).

Hawkish FOMC Minutes and Positive US Data Weigh on AUD/USD

Furthermore, the recent hawkish tone from the Federal Open Market Committee (FOMC) minutes is also putting pressure on the AUD/USD prices. The minutes showed that even though some policymakers disagreed, most of them leaned towards dealing with the rising prices. This has added to the concerns affecting the AUD/USD.s

In the meantime, positive data from the US and higher returns on US Treasury bonds are also affecting the AUD/USD negatively. For example, the US Industrial Production surprised everyone by growing 1.0% in July, much more than expected. This, along with better Capacity Utilization, Building Permits, and Housing Starts numbers, has strengthened the US Dollar, making it tougher for the AUD/USD pair.

Multiple Concerns Impact AUD/USD Amid Global Developments

Apart from this, concerns are rising due to a drop in China's housing prices since June. This adds to worries about a potential bond market issue in China as a major real estate company, Country Garden, faces difficulties in paying its bond debts. Despite efforts from Chinese policymakers to reassure the economy, market response has been limited, raising concerns about China's economic health. This is putting pressure on the AUD/USD price.

Adding to the negative sentiment is the fact that Fitch Ratings, a global rating agency, lowered economic growth expectations for 10 developed countries, which is also contributing to the downward movement of the AUD/USD price.

AUD/USD - Technical analysis

Following the recent data from the Australian Bureau of Statistics, the nation's unemployment rate for July experienced an uptick, settling at 3.7%, a rise from June's 3.5%. This data revealed a growth in the number of unemployed individuals by 36,000. Additionally, the participation rate, representing the percentage of those aged 15 and older either employed or actively seeking employment, witnessed a slight dip of 0.1 percentage points, closing at 66.7%. This macroeconomic development has cast a shadow over the AUD/USD pair.

Professionally examining the trajectory of the AUD/USD pair, it has adeptly met our anticipated target at 0.6400. Initiating today's trading with a bearish undertone, the pair not only breached the 0.6400 level but also affirmed the dominating bearish trend, hinting at a potential movement towards our forthcoming bearish target set at 0.6310.

Reinforcing this downtrend, the 50-Day Exponential Moving Average (EMA50) lends its weight behind the envisaged bearish momentum. However, this sentiment will hold its validity contingent upon the pair's ability to maintain its position below the 0.6400 threshold.

For today's trading landscape, we foresee the pair oscillating within a range, demarcated by the 0.6310 support level and the 0.6420 resistance level.

Daily Price Outlook

The USD/JPY currency pair is keeping its position around the mid-145.00s on Wednesday's Asian session. However, its upward momentum can be attributed to the robust US dollar, which gained strength from the impressive retail sales figures recently released. These numbers signal strong consumer spending and a boost to the overall economy. This positive outlook creates expectations of potential interest rate hikes by the Federal Reserve, enhancing the dollar's appeal to investors and potentially fortifying it further. All these factors are contributing to the gains seen in the USD/JPY currency pair.

USD Strength Continues Amidst Fed Confidence and Strong Retail Sales

The broad-based US dollar continues to build on its recent strong performance, reaching a peak not seen in over two months. This upswing is largely driven by the growing belief that the Federal Reserve (Fed) will maintain higher interest rates for an extended period. This belief gained strength following positive news released on Tuesday.

Accordig to the latest data, Retail Sales for July surged by 0.7%, surpassing both the earlier revised 0.3% and the expected 0.4% increase. Notably, sales excluding automobiles saw an impressive 1% rise, marking the most substantial monthly growth since January. This highlights robust consumer spending and the remarkable resilience of the US economy, bolstering the Fed's hawkish stance. Consequently, this is lending support to the USD/JPY pair.

Factors Influencing USD/JPY Pair and Future Outlook

Moreover, worries about Japan stepping in to prevent their currency from dropping further are holding back the USD/JPY pair's upward movement. Meanwhile, the Bank of Japan's more dovish stance prevents the Japanese Yen from getting too strong. Also, the difference in interest rates between the US and Japan has grown, as people expect the Fed to raise rates by 0.25% more by year-end. This setup suggests that the USD/JPY pair might rise in the short term.

Looking forward, traders are keeping an eye on upcoming US economic reports like Building Permits, Housing Starts, and Industrial Production, which could affect the USD's movement and give direction to the USD/JPY pair. However, all eyes are on the FOMC meeting minutes, as they will strongly impact USD demand in the short term and guide the next move for this currency pair.

USD/JPY - Technical analysis

Yesterday, the USD/JPY pair showcased further positive momentum, inching closer to our anticipated target of 146.00. The pair remains buoyed above the bullish trend line, reinforcing prospects for continued upward movement in both intraday and short-term frames, with the next bullish milestone pegged at 146.80.

Consequently, forecasts suggest a continued bullish trajectory in the near future, bolstered by the EMA50 underpinning the price. However, it's worth noting that a dip below 145.00 could instigate a temporary bearish pullback before the pair resumes its upward climb. Today's trading is projected to oscillate between a support of 144.80 and resistance at 146.40.

Daily Price Outlook

Gold price (XAU/USD) failed to stop its previous downward trend and is currently hovering around the $1,901 mark on Wednesday. However, the positive report regarding United States Retail Sales has unexpectedly led to concerns regarding potential tightening of the US Federal Reserve's monetary policy. This, in turn, has exerted downward pressure on the gold.

Another contributing factor to the XAU/USD decline is the recent sluggish performance of riskier assets, including equities, currencies from the Antipodean region, and various commodities. Hence, the combined effect of these downward trends in different sectors appears to have generated a challenging situation for the gold market.

US Economic Strength and Dollar Surge Impact Gold's Prospects

According to the recent news, the US Retail Sales data for July came in stronger than expected. It showed a 0.7% increase, surpassing the earlier reading of 0.3% and even beating the predicted 0.4% by the market experts. This is a sign that the US economy is doing better and getting stronger. This could lead to speculations that the US Federal Reserve could decide to make its monetary policy a bit tighter during their September meeting. If that happens, it might not be as attractive to invest in things like Gold.

Meanwhile, the broad-based US dollar is rising, driven by positive economic data from the United States. This uptrend in the DXY could impact Gold's price, given its inverse relationship with the dollar. Gold, often a safe haven in uncertain times, might lose some shine as the dollar strengthens. This could prompt investors to explore more enticing alternatives, potentially leading to reduced demand for Gold and influencing its price in the market.

China's Economic Concerns Put Pressure on Gold's Value

Furthermore, concerns over China's economic might are pressuring Gold's value. China's central bank's surprise move to cut one-year MLF loans by 15 basis points to 2.50% from 2.65% could intensify downward pressure on Gold prices.

In the meantime, China's July Retail Sales grew only 2.5%, missing the expected 4.8% and the previous 3.1%. Industrial Production also fell short at 3.7%, below the forecasted 4.5% and the prior 4.4%. These factors could contribute to Gold's uncertain value.

Looking ahead, investors watch US July Industrial Production and FOMC meeting minutes. Meanwhile, the signs of future US rate hikes could push Gold below $1,900, as higher rates attract alternatives, affecting Gold's appeal.

GOLD (XAU/USD) - Technical analysis

During the previous trading session, gold displayed a distinct downward trajectory, nearing our anticipated target of $1,892. This decline followed a period of fluctuating behavior, during which the price tested a pivotal resistance at $1,913, only to retreat in a bearish manner.

This reinforces the ongoing bearish trend in intraday and short-term perspectives, clearly delineated within the chart's evident bearish channel. We project a further descent toward the $1,874 mark.

Given these factors, our forecast remains bearish for the forthcoming period, with the EMA50 providing additional support for this stance.

This outlook hinges on the price's consistent positioning below the $1,913 threshold. For today, we anticipate a trading corridor with support at $1,885 and resistance capped at $1,915.  

Daily Price Outlook

The EUR/USD currency pair has managed to sustain its upward momentum, hovering around the 1.0934 level. However, the resurgence in this pair can be attributed to the release of upbeat Eurozone data, shedding light on the improved performance of the European economy. This positive economic outlook has acted as a catalyst, bolstering the Euro (EUR) and subsequently contributing to the overall strength of the EUR/USD currency pair.

Conversely, the bullish US dollar played a major role in putting a cap on the EUR/USD currency pair's further gains. The US dollar's bullish performance was fueled by the impressive retail sales figures. These numbers showed strong consumer spending, which in turn provides a substantial lift to the entire economy. This upbeat economic scenario has given rise to expectations of potential interest rate hikes by the Federal Reserve. As a result, investors are finding the dollar more attractive, potentially leading to even greater strength in its value.

Eurozone Industrial Production Rebounds, Minimal Impact on EUR/USD Pair

According to the latest official data, Eurozone Industrial Production was pleasantly surprised by showing an unexpected increase in June, signifying a revival in the manufacturing sector's progress. The monthly growth of 0.5% surpassed forecasts of a -0.1% contraction, while the annual dip of 1.2% in June was notably smaller compared to May's 2.5% decline, outperforming the anticipated 4.2% drop. These statistics had a mild effect on the EUR/USD pair, which is presently trading around 1.0930, displaying a 0.22% increase for the day.

Eurozone's Steady Growth and Positive Employment Change Bolster EUR/USD Confidence

Furthermore, the Eurozone's economy grew 0.3% in Q2 2023, meeting estimates and maintaining the same pace as Q1. The annual GDP rate was 0.6% for both quarters, in line with predictions. Meanwhile, Employment Change data for Q2 revealed a 0.2% increase quarterly and a 1.5% rise yearly.

Thus, the consistent 0.6% annual GDP rate in both quarters, along with the positive Employment Change data, reinforces confidence. This news has supported EUR/USD, which is trading at 1.0928, showing a 0.21% increase for the day.

EUR/USD - Technical analysis

The EUR/USD pair exhibited a bearish rebound upon encountering the initial significant resistance at 1.0955, signaling an intent to continue its corrective downward trajectory. A breach of the 1.0880 mark is crucial to pave the way for our subsequent target at 1.0785.

Given these dynamics, the prevailing outlook remains bearish for the forthcoming period, further reinforced by the negative momentum implied by the EMA50.

It's noteworthy that surpassing the 1.0955 level, followed by the 1.1030 threshold, would nullify the anticipated decline, steering the pair back toward a primary bullish trend.

Today, we foresee a trading spectrum with a floor at 1.0820 and a ceiling at 1.0970.