The recent rise of the Delta variant in the world has put pressure on the assets that are risky as countries are struggling to contain the outbreak of the virus as fears rise among binary brokers and investors. Analysts speculate that lockdowns and restrictions could affect the progress of recovery in the global economy.
EURO and US News
European Central Bank
A hawkish speech from the European Central Bank is good for the Euro if the statement will have some changes that favor the speech. The ECB uses the monetary policy as a means of communication to inform investors and online brokers about their decision on the economy based on the conditions influencing it. From their commentary, the interest rate is released and they offer clues about the future of the economic outlook.
The DXY has been climbing as investors, online brokers and other market participants are pouring in capital into the U.S currency and stocks as the new wave of the covid-19 may lead to another wave of lockdown.
US Existing Home Sales
The National Association of Realtors measures the numbers of residential buildings sold in the previous month and excluding the newer buildings under construction. This report has a ripple effect on the economy and also exposes the health of the economy as a leading indicator. They release the report 20 days into the new month.
An outcome greater than the expected is good for the US dollar but an actual that is lower than the forecast is not suitable for the currency. The previous data on home resales was 5.80M while the forecast is 5.89M.
EURUSD Technical Analysis
EURUSD: Monthly Chart Objective: Down Trend Buildups
Monthly Resistance levels 1.22670, 1.18965, 1.23629, 1.03522
Monthly Support levels 1.16005, 1.17082.
The EURUSD pair is on a bearish run for the past two months as it eyes the support level of 1.16005 a psychological point for both sellers and buyers.
A close below the zones will give way for a free fall of the pair to a lower low (1.03522) in the coming months. The Bulls may try to push back the price from the psychological zones for a bullish rally if the momentum is strong. A bullish opportunity may take the price to the resistance zone of 1.18965.
Weekly Chart Down Trend
Weekly Resistance levels 1.2340, 1.22670, 1.19740
Weekly Support levels 1.16028, 1.17118
The Speaker of the House of Representatives in the U.S. A Nancy Pelosi has tested positive for the COVID-19 despite being fully vaccinated. The Delta virus variant is causing the recent waves of infections. However, the authorized vaccines are still effective in the prevention of hospitalization and death over 90% since introducing the vaccines according to an expert in diseases (Anthony Fauci).
The U.S economy has been growing stronger recently after the inflation rate has been put under a certain control. If the weekly candle should close lower than the 1.16028 levels, we shall see the price drops lower and the US economy gets stronger.
Daily Chart Projections: Downtrend
Daily Resistance Levels 1.22651, 1.118408, 1.19761, 1.18472
Daily Support levels 1.18480, 1.17011, 1.16972, 1.17723, 1.17564
The US dollar continues to rise as investors, online brokers continue to transfer their investment into safe haven. We can see that the price of EURUSD pair is breaking below the 1.17723 level, a close lower than the 1.17564 zones will take the price to the support level of May 5th 2021 (1.17011). If the bulls should find their support, we may see the price rise towards the 1.18472 resistance zone, a breakout above the zone will lead to an uptrend.
Conclusion and Weekly Price Objectives
The contagious Delta strain of COVID-19 has been spreading across the globe and some countries are reintroducing lockdown and restrictions so that they can contain the infections of the virus. Online brokers and investors are also following the U.S President’s speech as his administration promise to do all it can to reduce inflation as prices of some items are on the rise.
If the Delta variant is not brought to the barest minimum, the stimulus program will continue to flow from Joe Biden’s administration and the Federal Reserves.
The US dollar is a safe haven for investors and online brokers as they keep their investments safe. on the daily time frame will take the price lower.
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