EURUSD Finds Major Resistance Amid Surging Potential GDP Growth in the United States
May 24, 2021
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EURUSD Forecast – 26th May 2021 Eurozone – German Final GDP On Tuesday, at GMT…
EURUSD falls from the highest level in a week due to corrections
EURUSD witnessed a decline in the morning of Monday’s trading in the European market, and recorded its first daily loss, moving away from its highest level in a week recorded last Friday, and this comes with investors avoiding risk and buying high-risk currencies and their interest in buying the US currency, in addition to the relative activity of correction and profit-taking, and the markets are awaiting this week for more economic data and indications towards the future of monetary policy in the United States.
The EURUSD pair traded at $1.1778, down by 0.15% from the opening level of today’s session at $1.1794.
EURUSD is testing the resistance level
At the conclusion of last Friday’s trading, the euro rose by 0.55% against the US dollar, in the largest daily rise since mid-May, recording the second daily rise in the last three days and its highest level in a week at $1.1804. This comes within the rebounds from its lowest level. In five months, which it recorded earlier in last week’s trading at $1.1705, the single currency also supported the weak data released by the US economy last week.
The US economy revealed the reading of the University of Michigan index, which measures consumer confidence rates during the month of August, and the index showed a decline to its lowest level since 2011, due to the growing fears of the high frequency of infections with the delta axis.
The US dollar rises on fears of the Coronavirus
The USD witnessed a slight rise in the morning trading on Monday, with the increasing demand for buying the US dollar as the best safe and alternative investment, amid growing fears of an escalation in the number of cases of infection with the Coronavirus delta.
The dollar index traded at 92.6 points, up by 0.1%.
The daily rate of infection with the Coronavirus is still increasing in many countries of the world, in addition to the spread of the most widespread and deadly delta mutant.
This week, the markets are awaiting more economic data and clues about the future of monetary policy in the United States. On Wednesday, the Federal Reserve is scheduled to release the minutes of its latest meeting, which is expected to contain more indications about future monetary policy.
Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.
