The EUR to USD (EURUSD) pair is little changed today as investors continue focusing on the ongoing earning season and the rising number of Covid-19 cases around the world. The pair is trading at 1.1753, which is slightly higher than the intraday low of 1.1740.
The bank earning season has been relatively mixed. Of the banks that have already released their earnings, Goldman Sachs has done better because of its trading division, where its revenue almost doubled. Because of its relatively smaller consumer business, the firm has not suffered a lot from loan defaults.
Other banks that have performed well are JP Morgan and Citigroup. On the other hand, Wells Fargo and Bank of America have released relatively weak results because of their exposure to consumer lending. The market will now be waiting for the next earnings from Morgan Stanley, Truist Financial, and Bank of New York Mellon, among others.
The EUR to USD has also reacted to the rising number of Covid-19 cases in the US and in Europe. In the US, the seven-day average of daily infection is at around 50,000. The same is true in Europe, where cases have started to rise in countries like France and Spain. Indeed, France has already announced strict circuit-breaker measures to halt the spread. Worse, analysts believe that the cases could rise as the northern hemisphere moves to winter.
The EURUSD price will later on react to the US jobless claims data and manufacturing index from the US. Analysts believe that these numbers will show some strength, albeit at a slower rate.
Commenting about the EUR to USD, analysts at UOB Bank in Singapore said:
“The underlying tone still appears to be a tad soft and we continue see chance for EUR to edge lower. That said, any weakness is likely limited to a test of 1.1705. On the upside, a break of 1.1780 would indicate the current mild downward pressure has eased (minor resistance is at 1.1760).”
EURUSD technical outlook
The hourly chart shows that the EUR to USD price has been in consolidation phase in the past few hours. The price is consolidating along the 25-day and 15-day exponential moving averages. It is also slightly below the ascending channel that is shown in pink. For today, I suspect that the pair will remain within this range, with the main support and resistance levels being at 1.1770 and 1.1720, respectively.
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