In the trades on Wednesday, USD fell, and Euro strengthened due to the expectation that the Fed will stick to the ultra-loose monetary policy stance. In the late trading, Euro rose rapidly after the release of the US ADP report, and then Fed officials said that the 2023 interest rate hike was in line with the new framework. Euro fell sharply under extreme pressure. The Purchasing Managers Index (PMI) of the service industry in the Eurozone in July was revised downward.
From a technical point of view, Euro gave up its recent gains on the daily line. After testing the upper of BOLL, EURUSD formed a hammer candle. The candle line appears to turn down in H4 graph, showing a downward channel structure. H4 graph showed that the candle is pointing downwards and form a downward channel. The indicators are also bearish across the board. Overall prioritize selling at high prices on the fluctuation zone. Consider the support zone and resistance zone, the deciding point whether to buy or sell is near 1.1850
Resistance：1.1850-1.1890-1.1910
Support：1.1800-1.1775-1.1750
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