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

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

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

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.  

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 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 long losing streak and remains depressed near its lowest level since June in the Asian session on Tuesday. However, the reason for this decline is the stronger US dollar, supported by expectations of another increase in interest rates by the Federal Reserve. In contrast to this, concerns about the global economy, particularly in China, were seen as one of the key factors that helps the gold price to limit its deeper losses.

Gold Price Influenced by Strong US Dollar and Inflation Challenges

As previously mentioned, the price of gold has been impacted by the strength of the US dollar. The broad-based maintained a robust position, hovering near its peak for a period exceeding two months. This particular situation is proving to be a challenge for the gold market. This is because people are starting to believe that the Federal Reserve (Fed) will keep interest rates high for a longer time. This makes US Treasury bond yields go up, and that's helping the US dollar.

According to recent data from the United States, it seems that the effort to reach the Federal Reserve's 2% inflation goal is still a challenge. The US Consumer Price Index (CPI), which measures the cost of goods for consumers, increased slightly in July.

Meanwhile, the US Producer Price Index (PPI) increased more than expected. This has led to the possibility that the Fed might tighten its policies further. As a result, the interest rate on the 10-year US government bond, an important measure, reached its highest point in nine months on Monday. This also provided some support to the US dollar and contributed to the gold declines.

Gold's Resilience Amid Global Economic Worries and Anticipation of US Data

On the other hand, the increasing concerns about the global economy, particularly in China, are giving a boost to the price of Gold due to its reputation as a safe-haven asset. These concerns gained ground after recent data from China showed that Retail Sales and Industrial Production did not grow as much as people had expected in July. This made investors even more nervous about the state of the economy. Even though China's central bank made surprise interest rate cuts, it didn't make investors feel much better. As a result, the safe-haven Gold is still attractive to them.

Looking forward, people are waiting for US economic news like Retail Sales and the Empire State Manufacturing Index. These, along with US bond yields, could affect the US dollar and Gold prices. The market mood might offer short-term trading chances.

GOLD (XAU/USD) - Technical analysis

The gold price has decisively breached the $1,913.15 level, as evidenced by the daily candlestick's close below this mark. This move has initiated bearish trades, applying pressure towards the $1,900.00 threshold. A further decline is anticipated, with primary targets pinpointed at $1,892.00, and possibly reaching as low as $1,873.50.

The current market sentiment leans towards an ongoing bearish trend in the near term, reinforced by the negative sway of the EMA50 and further highlighted by the manifestation of a double top pattern on the chart. Importantly, any rally beyond the $1,913.15 mark might counteract the present bearish pull and pave the way for short-lived recovery maneuvers.

Today's trading dynamics are forecasted to fluctuate between a support level set at $1,885.00 and resistance situated at $1,915.00.

Daily Price Outlook

Despite the strong performance of the US dollar, the GBP/USD currency pair has continued its upward trend, gaining considerable momentum and surpassing the 1.2712 level. This upward movement has been bolstered by the encouraging economic growth figures recently released in the UK.

Furthermore, positive developments in wage growth and an unexpected positive outcome in Employment Change have created a favorable environment for the British pound. However, it's worth noting that the ongoing strength of the US dollar has acted as a limiting factor, capping further gains in the the GBP/USD pair.

UK Wage Growth and BoE Outlook Impact on GBP/USD Pair

Moreover, the Chartered Institute of Personnel and Development in the UK recently conducted a survey, and their findings have added another interesting layer to the ongoing story. According to the survey, HR executives are anticipating a solid 5% increase in basic pay rates. This steady upward trend in wages aligns with the optimistic outlook for the Bank of England (BoE).

All eyes are now eagerly awaiting the release of the upcoming UK wage growth data. The predictions are pointing towards a potentially record-breaking high in wage growth for the month of July. Hence, the strong outcome from this data will likely enhance the prospects of a BoE interest rate hike in November, a move that could have a positive impact on the value of the British Pound.

However, it's important to acknowledge the flip side as well. If the wage growth data falls short of expectations, there might be concerns about a potential economic recession. This could result in a shift in sentiment, leading the GBP/USD currency pair to move in the opposite direction, as market participants reassess the economic landscape.

US Dollar Strength Impacts GBP/USD Amidst Fed's Stance and Global Factors

Moreover, traders are treading cautiously when it comes to betting on the GBP/USD pair due to the robust stance of the US Dollar. The USD Index (DXY), which measures the dollar against other currencies, is lingering around a two-month peak achieved earlier this week. This is mainly because of the widespread belief that the Federal Reserve intends to stick with higher interest rates for the foreseeable future. This sentiment got a boost from US data indicating ongoing challenges in reaching the Fed's 2% inflation target.

GBP/USD - Technical analysis

The GBP/USD pair adeptly met our initial forecasted target at 1.2625, encountering robust support at this juncture. This was accompanied by a transient bullish inclination. Intriguingly, the stochastic indicator has unmistakably lost its upward drive, while the EMA50 consistently exerts downward pressure on the currency's valuation.

Given these dynamics, our prognosis leans towards a bearish trajectory for the ensuing phase. For this forecast to materialize, the pair must decisively penetrate the aforementioned 1.2625 mark, setting its sights on 1.2505 as the subsequent bearish milestone. It's crucial to underscore that any surge beyond 1.2725, and subsequently 1.2825, would negate this bearish outlook, potentially catalyzing an upward price movement.

Daily Price Outlook

The EUR/USD currency pair managed to bounce back from its previous losses and is now above 1.0900 in the early European session on Tuesday. It is currently trading around 1.0923, up by 0.17% for the day. However, the positive European data boosted the shared currency and contributed to the pair's gains. In contrast to this, the strong US dollar, supported by expectations of higher interest rates from the Federal Reserve, limited the pair's upward movement. Looking forward, the EUR/USD pair might see changes as we await US Retail Sales data, which could bring volatility ahead.

Mixed Data and Uncertainty Affect EUR/USD Currency Pair

According to recent news, Germany's Wholesale Price Index (WPI) for July increased slightly to -2.8% YoY from -2.9% before, but it was lower than the expected -2.6%. The monthly Wholesale Price Index was -0.2%, which is better than the expected -1.4%. However, the European Central Bank's latest report mentioned that the Eurozone's inflation might stay high for a while, and the outlook for economic growth and inflation is still uncertain.

Thus, the impact of this news on the EUR/USD currency pair could be seen as relatively negative due to the uncertainty surrounding inflation and economic growth in the Eurozone. These factors could impact the EUR/USD pair's movements in the coming days.

US Dollar and Upcoming Influences on EUR/USD Pair

The broad-based US dollar has been on the rise and gained signficant traction over the past few days, which has undoubtedly weighed on the EUR/USD currency pair. Apart from this, the Fed San Francisco President Mary C. Daly mentioned that it's too early to decide on more rate increases or keeping rates steady. This uncertainty limits the Euro's strength and affects the EUR/USD pair negatively.

Looking ahead, investors are watching US Retail Sales later today. The Fed is expected to keep rates unchanged in September, with inflation in check. But chances of a 0.25% rate hike in November are up to nearly 40%.

Upcoming Events Shaping EUR/USD Pair's Direction

Looking forward, investors are anticipating the release of US Retail Sales data later today, with expectations of a 0.4% monthly increase in July. As the week progresses, attention will shift to Eurozone's Q2 GDP and July's Consumer Prices Index figures. Furthermore, the FOMC Minutes will be closely watched for potential market-moving insights. These upcoming events and reports are likely to influence the movements of the EUR/USD pair in the coming days.

EUR/USD - Technical analysis

The EUR/USD pair is currently hovering around the 1.0900 mark. It's noteworthy that the stochastic indicator is displaying a diminishing bullish momentum, which could potentially prompt the pair to continue its downward trajectory, breaking below the 1.0880 threshold and aiming for the subsequent target of 1.0785.

Given the backdrop of the recently formed double top pattern, coupled with the bearish influence exerted by the EMA50, we anticipate a continued bearish outlook. It's pivotal to highlight that maintaining levels below 1.1030 is crucial for the continuation of this predicted bearish momentum.

For today, the trading spectrum is projected between a support level of 1.0830 and a resistance level of 1.0980.