- Summary:
- The EURUSD pair will remain above 1.1300 today according to analyst at ING. The pair is reacting to news of positive business sentiment in Germany.
The EURUSD is little changed today as investors pause after the significant rally made in the past few days. The pair is trading at 1.1300, which is slightly below the yesterday’s high of 1.1345. In a statement today, analysts at ING said that they expect the pair to remain above 1.1300 as they struggle to see any positives for the greenback.
Germany business conditions improve
The biggest economic data today is the German business expectations data by Ifo. The data showed that business expectations increased from the previous 80.5 to 91.4. Another number showed that current assessment of the economy increased from the previous 78.9 to 81.3. Also, the business climate for Jine increased from the previous 79.7 to 86.2. These numbers have jumped for the second straight month as the economy starts to reopen.
These numbers came a day after Markit released impressive manufacturing and services PMI numbers. The data showed that manufacturers in France, Germany, and the eurozone got back to work this month. As such, these numbers have risen to the highest level in four months.
US coronavirus cases provides support
The EURUSD could be supported by the rising number of coronavirus cases in the United States. In a statement yesterday, Dr. Anthony Fauci said that he expected the number of new infections to jump in the next few weeks.
He attributed this to the recent protests, the fact that most states are reopening, and the limited testing. He said this as the US reported more than 32,000 cases, the biggest single day gain since May 1. For example, Arizona reported a sharp increase in cases even as Donald Trump held a rally there.
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EURUSD technical analysis
On the daily chart, the EURUSD pair is having its first decline in two days. The price is above the 50-day and 100-day exponential moving averages. Still, the trend for the pair is positive since bulls appear to be determined to test last week’s high of 1.1400.
On the other hand, a close in the red today will mean that the three white soldiers pattern will not happen. It will also mean that there are still some bears in the market who will want to push the price lower to the support at 1.2500.