EUR/USD continues on the downside

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EUR/USD Chart Analysis for 23 August 2023

The EUR/USD currency pair is trading near a 7-week low on Wednesday, August 23, 2023, as investors continue to weigh the risks of a global recession. The euro is being pressured by concerns about the European Central Bank's (ECB) ability to control inflation, while the dollar is being supported by expectations of aggressive interest rate hikes from the Federal Reserve.

On the technical side, the EUR/USD pair is trading below the 200-day moving average, which is a bearish signal. The pair is also trading below the support level of 1.0835, which could trigger further declines.

Fundamental factors

The following are some of the fundamental factors that could influence the EUR/USD pair on Wednesday:

ECB meeting minutes: The ECB will release the minutes of its July meeting later today. The minutes are expected to provide insights into the ECB's thinking on inflation and monetary policy.
US GDP growth: The US will release its second-quarter GDP growth estimate on Thursday. A weaker-than-expected reading could weigh on the dollar.
US employment data: The US will release its non-farm payrolls report on Friday. A strong jobs report could boost the dollar.
Technical analysis

The following are some of the technical levels that traders are watching on the EUR/USD pair:

Support: 1.0835
Resistance: 1.0930
200-day moving average: 1.0905


Overall outlook

The EUR/USD pair is trading in a bearish trend and is likely to remain under pressure in the near term.

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This analysis does not represent professional and/or financial advice.
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