Euro Bounce-off Over Double Bottom 1.1760
The EUR/USD plunged sharply to test the support level of 1,1764 but reversed right after to trade at 1.1780. The E.U. announced the May Current Account on the data front, which reported a surplus of €11.7 billion, missing the market's forecast. The U.S. announced June Building Permits, which declined 5.1%, while Housing Starts surged 6.3%.
On Wednesday, the calendar isn't offering any major economic event, as the E.U. won't publish relevant data. However, the E.U. will publish weekly MBA Mortgage Applications. The calendar will have nothing significant to offer until next Thursday, when the ECB (European Central Bank) will publish its monetary policy decision.
The risk-off market sentiment spurred by the growing number of coronavirus cases amid the delta variant of coronavirus pressed riskier assets. It held the entire global stock market under stress. The risky securities like bonds, stocks, and yields remain depressed as the growing number of cases globally could reduce the global economic revival.
Many nations striving to fight the swift spread of coronavirus were required to re-inflict lockdown measures as the Delta variant made cases climb at a dangerous level. The WHO has also advised that the delta variant was now the dominant strain globally. According to U.S. Centers for Disease Control and Prevention, the cases in the U.S. were up by 70% last week, and the deaths were 26%, with outbreaks occurring in parts of the country with low vaccination rates.
The Dow Jones Industrial Average (DJIA) sank to its lowest adjacent with the U.S. Treasury Yields on benchmark 10-year note that extended its drop for 5th consecutive session and fell to its weakest in 6 months at 1.176%. The risk-off market sentiment appended strength to the safe-haven U.S. dollar that eventually reached beyond 93 handles, its highest in 4-months, and added pressure on the currency pair EUR/USD. Thus, the single currency Euro is trading bearish against the U.S. dollar.
EUR/USD Intraday Technical Levels
Pivot Point: 1.1793
EUR/USD - Technical Outlook
The technical front of the EUR/USD pair hasn't changed a lot as the pair continues to trade at the 1.1780 level, bouncing off the support level of 1.1760 level. The single currency Euro has crossed below 50 SMA (simple moving average) on the 4-hourly timeframe. This 50 SMA continues to extend resistance at the 1.1820 mark. The closing of candles beneath this mark demonstrates a bearish trend in the EUR/USD currency pair.
On the lower side, the EUR/USD's support stays at the 1.1765 mark that's dispensed by a double bottom pattern. Violation of this double bottom pattern can expose the EUR/USD towards the 1.1735 support level. All the best!
JOIN LONGHORNFX TODAY
24/7 live support, lightning fast withdrawals, guaranteed safe and reliable trading platforms with a true ECN broker.