EURUSD is under pressure after a surge in virus cases has seen more lockdown restrictions placed on countries in the Eurozone. France saw a record 52,000 cases on Sunday, while Spain has imposed stricter measures. A host of other countries such as the Czech Republic and Norway are also tightening rules. Italy has seen clashes in Naples and Milan between police and protestors as the public start to tire of the situation and this could build across the continent.
Wall Street suffered on Monday as the U.S. has seen its own spike, but the recent surge in cases has put the global recovery picture under threat. Stocks were already under pressure as the chances of a new stimulus package faded once again and this has helped the U.S. dollar.
Today sees the release of Durable Goods Orders in the U.S. with markets looking for a gain of 0.5%, compared to 0.4% last month. Consumer confidence is also expected to come in slightly higher at 102, but these are lagging indicators that will be ignored with the threat of another slowdown.
The real mover for the EURUSD comes on Thursday with the latest interest rate and policy meeting of the European Central Bank. Analysts expect the central bank to hold steady on interest rates but there may be some glimpse of future action during the press conference. Deflation and a stronger Euro has been a concern for the bank in recent months.
EURUSD Technical Outlook
EURUSD has been attempting to move above the 1.1880 high, which also aligns with resistance from September 14th. Price has now retreated with a bearish close yesterday and we could see further gains in the USD. A stop at 1.1850 could allow a short to target the 1.1750 uptrend line. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching.
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EURUSD Daily Chart
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