23 August EURUSD analysis – Strong USD pressures EUR and GBP


Economic data will continue to drive headlines on Wednesday, with a batch of PMI data. At the same time, monetary policy will also be on the radar ahead of the Jackson Hole Symposium. Gain insights on the market with OctaFX 23 August EURUSD analysis

23 August, OctaFX – The France manufacturing PMI 55.8 and services PMI 55.5 data came in mixed. Meanwhile, the Germany manufacturing PMI data came in higher at 59.4, whilst Services PMI was in line with forecast at 53.4. Next, the North American session begins with commentary from Federal Open Market Committee (FOMC) member Robert Kaplan, who will be participating in a moderated Q&A session in Texas.

At 13:45 GMT, Markit will release the latest batches of US PMI data. The nation’s manufacturing industry is forecast to gather pace in August. Meanwhile, the services sector is expected to grow at a moderate pace. The Commerce Department will issue new home sales data for the month of July. New home sales, which are a much more volatile segment of the housing market, are expected to rise 0.3% from June to reach a seasonally adjusted annual pace of 612,000.

23 August EURUSD analysis

The euro lost momentum on Tuesday, with the EURUSD falling back below 1.1800. The losses were triggered by a resurgent US dollar, which rose sharply against a basket of world peers. The pair faces immediate support at 1.1661, which is the low from 17 August. Immediate resistance is located at 1.1828, which is the high from 11 August.

GBPUSD technical analysis

GBPUSD analysis

A stronger dollar weighed on the British pound on Tuesday, as cable fell to fresh eight-week lows. The GBP/USD briefly touched 1.2805 before consolidating slightly higher. A clean break below 1.2810 would favour a bearish extension that could send prices back down towards 1.2700.

WTI  oil technical analysis

WTI outlook

Oil prices stabilized on Tuesday after a volatile start to the week. US West Texas Intermediate (WTI) was trading lower during the Asian session, with prices hovering around $47.70 a barrel. The outlook on crude is neutral, with the RSI hovering below 50 and the MACD just above the zero line. Energy traders will keep a close eye on weekly inventory data from the US Energy Information Administration, which are due at 14:30 GMT.

Disclaimer

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