The EUR/USD pair is trading near 1.19, with the euro benefiting from continued dollar weakness and shrugging off European concerns. Is there a relief rally planned? According to FXStreet’s Analyst Yohay Elam, US data could push the pair lower.
“The headline figure for the ISM Services Purchasing Managers’ Index is expected to drop from 64 to 63.5, indicating continued strong expansion. The focus may move to the Prices Paid component of PMI. Although this inflation indicator is expected to fall, the ISM Manufacturing PMI’s all-time high shows there is opportunity for an upside surprise. This could lead to new dollar strength.”
“COVID-19’s Delta form is still causing havoc in Spain and Portugal, and its highly contagious nature suggests it could go even further. Germany, Europe’s greatest economy, has lifted travel restrictions for visitors coming from the United Kingdom, where the strain is widespread.”
“Beyond the daily high of 1.1895, 1.1910, which functioned as support in late June, offers some resistance. It’s followed by 1.1950, which was the pair’s high point earlier this month.”
“Some support may be found around 1.1880, which resisted a recovery attempt last week, and then at 1.1835, which is a support line from about the same time.”/n
