FX.co ★ EUR/USD analysis for August 04 2020 - First upside target reached at 1.1850 but still more room for the upside towrads 1.1900

Latest data released by Eurostat

Prior 0.6%

• PPI -3.7% vs -3.8% y/y expected
• Prior -5.0%

Producer prices improved a little once again in June but are still largely subdued relative to a year ago. The data here is a proxy for inflation pressures in any case and is a lagging indicator, so not much else to really gather from the release.

EUR/USD keeps a little firmer still just under the 1.1800 handle as the battle around key near-term levels continues on the session.

As I discussed in the previous review, the EUR managed to complete the downside correction and test our first target at the price of 1,1800 Next upward targets are set at 1,1850 and 1,1900.

Further Development

Analyzing the current trading chart, I found that the buyer took control from sellers and that based on the daily time-frame there is is potential for the upside continuation. EUR/USD still got strong upside trend in the background.

1-Day relative strength performance Finviz :

Based on the graph above I found that on the top of the list we got Nautral gas and Lumber and on the bottom of the list Lean Hogs and Crude Oil.

Key Lvels:

Support levels: 1,1767 and 1,1750