EURUSD: bulls launch second assault on the 1.19 mark

The EURUSD pair eased 0.06% to 1.1787 on Monday, August 24. During the first half of the session, the euro climbed as high as 1.1850. Demand for risk assets got a boost from news out of the US and Europe as French and Italian authorities ruled out the idea of re-imposing a lockdown despite an upsurge in new Covid-19 infections across Europe. Meanwhile, US authorities issued an emergency use authorization for investigational convalescent plasma for the treatment of Covid-19 in hospitalized patients.

During the North American session, buyers retreated to the level of 1.1784. This was mostly a technical correction that may have been triggered by GBP in the absence of news on the Brexit negotiations.

Stateside, major equity benchmarks posted gains in the range of 0.6% to 1.4%. The S&P 500 and Nasdaq 100 notched up new record highs of 3,432.10 and 11,725.40, respectively.

Today's macro agenda (GMT+3)  

11:00 Germany: Ifo business climate, current conditions and business confidence (August)

13:00 UK: CBI retail sales (August)

16:00 US: S&P/Case-Shiller home price index (June)

17:00 US: Richmond Fed manufacturing index (July)

22:25 US: FOMC member Mary Daly speech

Current outlook

The single currency trended higher in line with expectations on Monday, up 30 bps at 1.1818 in Asian trading. Buyers need to break through the trend line in order to close in on the 67th degree of the Gann angle at 1.1866. This model implies decent upside. Since all euro crosses are trading in positive territory, the odds that the euro will break out of the resistance level remain high. Interim resistance is at 1.1840.

Investors are getting ready for central bankers to speak at an economic policy symposium that will be held by the Federal Reserve Bank of Kansas City. The annual meeting will be held online this year on August 27-28.

EURUSD-25-08

 

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