Bullish Bias Dominates
After hitting a top of $1.1810 and a low of $1.1782, the EUR/USD pair ended the day at $1.1795. On Monday, the EUR/USD pair remained unchanged during the trading session, despite conflicting investor sentiment for the day.
The US Dollar Index, which determines the dollar's value against a range of six major currencies, was also consolidating, remaining green near the 92.79 marks, keeping the EUR/USD pair under pressure. On the other hand, increased risk appetite in the market continued to underpin the EUR/USD currency pair, which stayed in a tight range with no movement for the day.
On the other hand, increased risk appetite in the market continued to underpin the EUR/USD currency pair, which stayed in a tight range with no movement for the day. The market's risk appetite soared when reports of optimism worldwide about the reopening of borders and rising vaccination rates surfaced.
The Brussels-Capital Region has stated that it intends to reach a vaccination rate of 65 percent by the end of October to avert the fourth wave's ramifications. Brussels' health authorities have begun providing vaccination shots at retail malls and supermarkets to raise immunization rates. This action sparked hope that the economic recovery would quickly pick up, and risk appetite returned to the market, pushing the EUR/USD higher.
On the other hand, the World Health Organization worried about increased coronavirus transmission rates in Europe on Monday. According to Hans Kluge, the agency's Europe head, the number of fatalities in Europe increased by 11% over the previous week. Given the increased transmission rate, the WHO estimates that 236,000 people will die in Europe by Dec 1. This WHO prognosis put more pressure on the single currency Euro, which erased all of its gains for the day, dragging the EUR/USD pair lower.
On the economic event front, the German Prelim CPI for August fell to 0.0 percent from 0.1 percent expected, weighing on the Euro and keeping the EUR/USD under pressure. The Spanish Flash CPI for the year rose to 3.3 percent at 12:00 GMT, beating the expected 3.0 percent, boosting the single currency Euro and pushing EUR/USD higher.
Pending Home Sales in July plummeted to -1.8 percent in July, compared to the projected 0.5 percent, weighing on the US currency and pushing EUR/USD higher at 19:00 GMT. Mixed data from Europe aided the EUR/consolidated USD's advance, and the pair stayed range-bound throughout Monday's trading day.
EUR/USD Intraday Technical Levels
Pivot Point: 1.1796
EUR/USD - Technical Outlook
On Tuesday, the EUR/USD exhibited a solid bullish bias as it traded at the 1.1828 level. On the hourly chart, the direct currency pair has violated the ascending triangle pattern extending resistance at 1.1810. For now, the EUR/USD is exposed to the next resistance level of 1.1837 level. Furthermore, the breakout of the 1.1837 level exposes the pair towards 1.1851.
On the flip side, immediate support prevails at 1.1823 and 1.1810 levels. The 50 SMA (simple moving average) supports the buying trend, while the Stochastic also suggests a bullish trend in the EUR/USD.
On the downside, the breakout of the support level of 1.1810 levels exposes the pair towards 1.1796 and 1.1783 levels. Therefore, the traders will focus on the 1.1810 level, as above this, the bullish bias dominates and vice versa. All the best.
JOIN LONGHORNFX TODAY
24/7 live support, lightning fast withdrawals, guaranteed safe and reliable trading platforms with a true ECN broker.