The EUR/USD continues to advance in its decline for the sixth consecutive day. This Wednesday the pair has fallen to a new low of almost four and a half months at 1.1707, increasingly approaching the 1.1700 region.
The dollar remains strong against the main currencies, supported by expectations of a reduction in the bond purchase program earlier in time and by the caution of investors in the face of fears about the Delta variant of the covid. The DXY index that measures the greenback today reached a three-week high at 93.17, currently trading above 93.16, gaining 0.12% daily.
On the economic calendar, one piece of information focuses all the attention of the day, US inflation for the month of July, which will be published at 12.30 GMT. Speeches by various members of the Fed are scheduled later.
Germany published its inflation data this morning, with a monthly growth of 0.9% in July, as expected, surpassing the 0.4% in June by five tenths. Annual inflation has risen 3.8%, meeting forecasts and exceeding the 2.3% of the previous month. This is the highest rate recorded since December 1993.
EUR / USD Levels
With the pair trading at the time of writing above 1.1711, shedding 0.09% on the day, the next support in case of further declines appears at 1.1704, low of March 31 and so far in 2021. A break below can trigger a further pullback towards 1.1600 / 02, where the lows of November 2020 are.
On the upside, intermediate resistance is between 1.1740 / 70, where the August 9-10 highs are. A rally above 1.1800 would be necessary to target 1.1857 resistance, August 5 high. Higher up, the main barrier awaits at 1.1899, the highest level on August 4.
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