Core consumer price index of the Eurozone has not shown a trend of decreasing.
The Euro has experienced a slight depreciation over the past few months, but today it has shown signs of strengthening, primarily due to investors awaiting the announcement of inflation rates by the United States, which would impact the US Dollar (USD). As a result, the US Dollar Index (DXY) has decreased slightly. The impending inflation rate announcement is a crucial variable in the decision-making process for the monetary policy of the United States Federal Reserve (FED), set to occur in September, and will undoubtedly affect various currencies.
Investors anticipate that the European Central Bank (ECB) might raise interest rates multiple times within this year, maintaining this elevated interest rate for some time. This expectation is supported by data, including the Core Consumer Price Index (Core CPI), which has barely decreased in the Eurozone over the past several months and has even slightly increased from previous expectations. This concern about interest rates continues to affect investors' confidence in the economic growth of the Eurozone.
The Eurozone's unemployment rate has continuously decreased to a historic low of 6.4%, slightly surpassing the anticipated rate of 6.5%. The number of unemployed individuals has decreased by 62,000 people to 10.814 million in the past month. Simultaneously, the youth unemployment rate, which measures individuals under 25 years of age seeking employment, has also reached a record low of 13.8%.
While the unemployment rate is decreasing simultaneously, the Core Consumer Price Index (Core CPI) shows no inclination to decrease. Moreover, it has been observed that the inflation rate for the service sector has adjusted rapidly, reaching 5.6%. This increase surpasses expectations and can be considered almost comparable to the 1992 situation when the service sector inflation rate increased by 6%. The sustained high inflation rate in the service sector also suggests that employment in the Eurozone is increasing. This implies that wages in the service sector are likely to adjust upwards accordingly.
The yield on 10-year government bonds in the Eurozone has experienced a slight reduction to 3.2%. Similarly, the yields on 5-year and 1-year government bonds have decreased as well. The anticipated inflation rate announcement by the United States is a significant factor in this situation, along with the expectations of a rate hike by the Federal Reserve (FED) in September.
Techical analysis data (5H)
Resistance: 0.9100, 0.9123, 0.9138
Support: 0.9062, 0.9047, 0.9024
Pivot Points June August 10, 2023 06:28 PM GMT+7
| Name | S3 | S2 | S1 | Pivot Points | R1 | R2 | R3 |
| Classic | 0.9024 | 0.9047 | 0.9062 | 0.9085 | 0.9100 | 0.9123 | 0.9138 |
| Fibonacci | 0.9047 | 0.9061 | 0.9070 | 0.9085 | 0.9100 | 0.9109 | 0.9123 |
| Camarilla | 0.9065 | 0.9069 | 0.9072 | 0.9085 | 0.9079 | 0.9083 | 0.9086 |
| Woodie's | 0.9018 | 0.9044 | 0.9056 | 0.9082 | 0.9094 | 0.9120 | 0.9132 |
| DeMark's | - | - | 0.9054 | 0.9081 | 0.9092 | - | - |
Buy/Long 1: If there is a touch of support in the price range of 0.9047 - 0.9062 but it's not possible to break through the resistance at 0.9062, you might consider setting a Take Profit (TP) around 0.9123 and a Stop Loss (SL) around 0.9024, or according to the acceptable risk level.
Buy/Long 2: If you can successfully break through the resistance in the price range of 0.9100 - 0.9123, you could set a Take Profit (TP) around 0.9138 and a Stop Loss (SL) around 0.9047, or according to the acceptable risk level.
Sell/Short 1: If there is a touch of resistance in the price range of 0.9100 - 0.9123 but it's not possible to break through the support at 0.9100, you might consider setting a Take Profit (TP) around 0.9047 and a Stop Loss (SL) around 0.9138, or according to the acceptable risk level.
Sell/Short 2: If you can successfully break through the support in the price range of 0.9047 - 0.9062, you could set a Take Profit (TP) around 0.9024 and a Stop Loss (SL) around 0.9123, or according to the acceptable risk level.
Technical Indicators August 10, 2023 06:28 PM GMT+7
| Name | Value | Action |
| RSI(14) | 39.700 | Sell |
| STOCH(9,6) | 37.141 | Sell |
| STOCHRSI(14) | 0.000 | Oversold |
| MACD(12,26) | -0.000 | Sell |
| ADX(14) | 29.313 | Sell |
| Williams %R | -96.341 | Oversold |
| CCI(14) | -184.3271 | Sell |
| ATR(14) | 0.0022 | Less Volatility |
| Highs/Lows(14) | -0.0027 | Sell |
| Ultimate Oscillator | 37.180 | Sell |
| ROC | -0.244 | Sell |
| Bull/Bear Power(13) | -0.0057 | Sell |
|
Buy:0 Sell:9 Neutral:0 Summary:Strong Sell |
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