EURUSD - Recovery but the prospect still faces many difficulties

10 ก.ค. 2023

EURUSD The euro has recovered after a period of economic instability, which put pressure on and limited its recovery.

The optimism about the eurozone's economy at the beginning of the year is fading due to disappointing economic data. Experts are warning that the slow growth in the eurozone could continue for several years. However, the latest ADP National Employment Report in the US showed a significant increase in private payrolls in June, the largest increase since February 2022. This raises the likelihood of the Federal Reserve raising interest rates in July. Fed Chairman Jerome Powell, however, has expressed his desire for a gradual increase in interest rates.

On the daily chart, EURUSD currently operating within a downward price channel, although there has been some recovery, it's not enough to reverse the current downward trend and doesn't provide enough technical conditions for a significant increase in EUR/USD price.
Only when EUR/USD moves above the 0.236% Fibonacci retracement level, there is potential for a stronger upward movement with a target of 1.10122.
Additionally, keeping the price action within the downward channel is a condition for EUR/USD to decrease, and once it falls below the 0.382% Fibonacci retracement level, there is further potential for a larger decline with a target at the lower edge of the channel and the 0.50% Fibonacci level.
Key technical positions are as follows:
Support: 1.08678 - 1.08231
Resistance: 1.09230