EUR/USD: Watch for next support at 1.0800

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The market may be slightly inclined to continue to be bearish on EUR/USD.

Unless we get some encouraging news from the Purchasing Managers Index (PMI), or the dollar falls (eg, a stock market rally following Nvidia’s earnings report, which leads to a lower dollar), we think the market may be slightly inclined to remain bearish EUR/USD as this is some positioning ahead of the Jackson Hole meeting.

EUR/USD tested the low of 1.0834 in early July this morning. If it falls below this level, the next support is 1.0800 (200-day moving average).