Fundamental analysis of EUR/USD

The EUR/USD pair declined on Tuesday and is trading at 1.08540. This change can be explained by the decline in US Treasury bond yields and the correction of the US dollar. 

Investors' attention is drawn to the regional economic indicators of the European zone countries such as France, Germany and the Eurozone, including the upcoming PMI data. Uncertain signals from these indicators have raised questions about the European Central Bank's next monetary policy decision in September: a combination of a sharp downturn in the manufacturing sector and a slowdown in the services sector could reduce the chances of a rate hike in September. In addition, inflation, new orders and employment are influencing these considerations, with the services sector playing a particularly important role. Therefore, fluctuations in the PMI figures could have a significant impact on the EUR/USD valuation. 
On the other hand, the private sector is awaiting the release of the preliminary PMI for the services sector, so it cannot be said that the US remains out of focus. Market participants are not sure whether to expect the Fed to raise rates for the last time in the current cycle or to stop tightening monetary policy. The long-awaited symposium in Jackson Hole, which will conclude with a speech by Fed Chairman Jerome Powell, will be decisive. A stronger than expected services PMI could increase the likelihood of a rate hike in September and prompt Powell to take a tougher stance. Conversely, a slowdown in the services sector could negate any chance of a decisive rate hike and increase fears of a US recession. In addition, the US Dollar Index, which tracks the performance of the US dollar against six major currencies, rose to the 103.500 level. However, the US dollar came under some pressure due to lower Treasury bond yields and weak US housing data, which saw existing home sales fall at a 2.2% annualized rate in July. 
The focus is now on the Jackson Hole symposium and Fed Chair Powell's next speech, which will shed light on US economic developments and influence trading decisions.
Technical analysis and scenarios:

Stochastic indicates that the market is not currently in oversold territory with a value of 29.0487, but is close to it. The Bollinger Bands indicate that the price is moving in a lower range, indicating bearish momentum. The downward direction of the Bollinger Bands and the widening of the price range suggest increased volatility and continuation of the bearish trend. The MACD indicator, although not sharply negative, is below its signal line, indicating a bearish trend.
Main scenario (SELL)
Recommended entry level: 1.08140.
Take Profit: 1.07260.
Stop Loss: 1.08500.
Alternative scenario (BUY)
Recommended entry level: 1.09000.
Take Profit: 1.09490.
Stop loss: 1.08750.