EUR/USD: Coronavirus related-news set the pace with Fibonacci resistance at 1.1270 capping


EUR/USD continues to trade below its 20 DMA, lifeless around 1.1200 for a third consecutive week, which gains downward strength around a Fibonacci resistance level at 1.1270. Meanwhile, data indicated an economic revival in June but came out too late to be relevant as markets are focused on a record upsurge in contagions in the US, FXStreet’s Chief Analyst Valeria Bednarik briefs.

Key quotes

“Germany will publish May Factory Orders, Industrial Production, and the Trade Balance for the same month, all seen improving from the previous readings but holding within worrisome levels. The EU will publish May’s Retail Sales, seen down in the month by 15%. Old data that has little chances of having an impact on the shared currency. Instead, the market will remain focused on coronavirus developments, including progress in vaccines or treatments that can speed up the economic comeback.”

“The most relevant support is he 38.2% retracement of EUR/USD latest daily advance at 1.1170. With a break below it exposing 1.1095, the 50% retracement of the same rally.”

“To the upside, there’s a strong resistance level at 1.1270, while beyond this last, the pair can recover towards the 1.1340/60 price zone. June high at 1.1422 is an inflection point, with the pair set to remain in no man’s land as long as below it.” 

 

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