EURUSD

EURUSD Weaker as the Rising Number of Coronavirus Cases in the US Weigh on Sentiment

Without any market-moving data on schedule, EURUSD took its cue from market sentiment. Yesterday, the currency pair fell from an intraday high of 1.1370 to 1.1283 where it closed for the day, down from where it opened at 1.1325. Rising coronavirus cases in the US have put investors at the edge of their seats as some brace for another round of lockdowns in the near future.

As of this writing, the number of confirmed coronavirus cases in the US is at 3,114,746. The death toll in the country has also risen to 133,241 with the state of Texas printing its third record day of casualties at 105.

For today, only the third-tier report on French industrial production is due to be released. Scheduled at 7:45 am GMT, it is expected to come in at 15.2% from a 20.01% contraction the previous month.

Technical Analysis

On the 4-hour time frame, it can be seen that EURUSD has fallen to its 200 SMA. As of this writing, the currency pair is testing the indicator for support. Reversal candlesticks around its current price at 1.1275 could mean that we may soon see it trade up to 1.1295 where it may test its previous trendline and Fib levels (drawing the Fibonacci retracement tool from the high of July 9 to today’s low). 

It is also worth pointing out that EURUSD has recently broken support at its rising trendline (from connecting the lows of July 1, July 3, and July 8). This could be a sign that sellers are dominating trading on EURUSD and that the currency pair could soon fall to its July 3 lows at 1.1222.

EURUSD, 4-Hour Chart

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