EURUSD Hits Four-Month Highs As U.S. Economic Data Point To Fast Recovery

Live EURUSD Chart
Live EURUSD Chart

EURUSD hits four-month highs as the risk-on sentiment pressures USD. Hopes for a coronavirus vaccine after Moderna announced positive results of the initial stage trials and better than expected economic data from the USA boost optimism that the recovery will continue at a faster pace than previously anticipated.

The U.S. Industrial Production rose by 5.4% in June, topping the expectations of 4.3%. The United States NY Empire State Manufacturing Index came in at 17.2, beating the forecasts of 10 in July. The Capacity Utilization came in at 68.6%, topping the expectations of 67.7%.

The Import Price Index registered in at 1.4%, above the expectations of 1% in June while the Export Price Index came at 1.4% above the expectations of 0.8%.
From Europe, the Italy Consumer Price Index came in at -0.2% in line with expectations for June.

The common currency also gets a hand on speculation that the E.U. meeting later on the week will finalize the details on the 750 billion coronavirus relief fund.

EURUSD Daily Technical Analysis

EURUSD is 0.23% higher at 1.1425 as the pair keeps the positive momentum making fresh four-month highs. The technical outlook is clearly bullish, and an attempt to yearly highs above 1.15 looks possible as long as the pair stays above the 1.14 mark.  

On the upside, the immediate resistance for EURUSD stands at 1.1452 the daily high. If the pair breaks that resistance, then the next hurdle is at 1.1498 the high from March 9 trading session. A move above might open the way for a test of the 2019 highs at 1.1572.

On the other hand, first support for the EURUSD stands at 1.1390 the daily low. Next support zone would be met at 1.1327 the low from yesterday’s trading session. If the EURUSD pair breaks that support, then bears would target 1.1258 the low from July 10 trading session. 

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EURUSD Daily Chart

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