- Summary:
- EURUSD pair rose to a two-week high as governments started talking about reopening their economies. Germany, Italy, and Spain are considering opening up
The EURUSD pair rose slightly as investors reacted to Trump’s new pressure on reopening the US economy. In a tweet yesterday, the president said that he had the authority to reopen the economy even as the number of coronavirus cases continued to rise. The claim has been debunked by a number of fact checkers, who said that only governors could reopen the economy.
According to the New York Times, Trump has been under pressure from his business friends like Steve Schwarzman to reopen the economy. On the other hand, his medical advisors have warned him that reopening the economy would lead to more infections and more deaths.
Meanwhile, in Europe, a number of countries have started planning on how to restart their economies. Italy and Spain, the most affected countries in the region have started to lift restrictions on non-essential businesses.
As I reported earlier, Germany has also considered lifting these restrictions while France is planning on the best way to lift the restrictions.
Still, the biggest challenge countries are facing is on how to restart the economies without risking more infections.
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EURUSD Technical Analysis
On the hourly chart, the EUR/USD pair rose to an intraday high of 1.0955, which is close to the Fibonacci Retracement level. The price is also above the blue support shown in blue below. It is also attempting to move above the resistance level of 1.0950, which is shown in purple below.
A bullish trend will remain if the pair manages to solidly cross the 50% retracement level at 1.0956. If it does this, it will likely move up and test the 61.8% retracement level of 1.1000.
On the flipside, a bearish trend will start if the pair stays below the important support of 1.0915 .
[vc_single_image image=”40773″ img_size=”full” onclick=”link_image” title=”EUR/USD 1-Hour Chart”]