Technical Analysis EUR/USD for 8/3/15

The EUR/USD tested trend line resistance but was unable to break key levels in the wake of a weaker than expected employment cost index. The lean 0.2% Q2 U.S. ECI rise marked a new cycle-low gain that sharply diminished the cyclical uptrend in labor cost growth from late-2009 recession-lows. The tiny rise follows 0.5%-0.7% gains over the prior four. The cycle-low 0.2% wage gain sharply curtailed the steep four-quarter climb in wage growth through Q1 that seemed at odds with the assumption of continued labor market slack.

The EUR/USD tested a downward sloping trend line that connects the 1.1196 highs with the .1128 highs and comes in at 1.1112.  Support on the currency pair is seen near the 10-day moving average at 1.0970.  Additional support is seen at an upward sloping trend line that connects the lows in April to the lows in July, and comes in at 1.0820.