In a risk-off environment, the EUR/USD has been battling to recover. Are there any new lows on the horizon? According to FXStreet analyst Yohay Elam, US data, Delta, and technicals all trend lower.
“On Friday, the attention will be on the American consumer, with the all-important Retail Sales report predicted to indicate a fall in June, continuing the downward trend seen in May. On Thursday, disappointing statistics did not weaken the dollar, and it could increase again on Friday if new concerns develop.”
“What are shoppers’ thoughts on inflation? The preliminary Consumer Sentiment statistics for July from the University of Michigan may provide some answers. If the survey’s inflation components rise, the dollar may climb as well. Forward-looking data is actively monitored by the Fed and the markets.”
“On both sides of the Atlantic, the Delta covid variety is expanding. The Netherlands, Cyprus, Spain, and Portugal are the current hotspots on the old continent, but infections are spreading to other nations as well. This could stifle the rehabilitation process. Cases are far lower in America, but they are on the rise in certain places, and the vaccine campaign has paused. The dollar, on the other hand, benefits from safe-haven flows while the euro suffers from growth concerns.”
“On the four-hour chart, the euro/dollar is losing ground and has retreated below the 50 Simple Moving Average. There is possibility for greater declines because the Relative Strength Index is outside of oversold territory.”/n
