EUR/USD Developments Larger As COVID-19 Fears Persist

COVID-19 is making headlines as soon as once more within the U.S., prompting a recent spherical of pandemic uncertainty. This morning has introduced reviews of extra vaccine shutdowns, with the Johnson & Johnson shot being briefly shelved. As well as, the state of Michigan is contemplating reinstituting “shelter-in-place” lockdowns as an infection charges are spiking. The information cycle hasn’t helped the Dollar, as indicated by the motion within the EUR/USD (+0.21%), USD/CAD (-0.10%), and USD/CHF (-0.08%).

Because the wide-scale introduction of COVID-19 vaccines, the subject has been a controversial one. Now, it seems as if the security of the single-shot Johnson & Johnson vaccine is now in query. Right here’s the place the scenario stands:

• There have been six reported instances of a “uncommon and extreme” sort of blood clot. The six instances had been amongst 6.eight million doses administered within the U.S.
• The information has prompted the CDC and USDA to name for a halt to the Johnson & Johnson vaccine.
• Though seemingly unrelated, the blood clot points with the Johnson & Johnson shot echo these of the AstraZeneca remedy that has additionally been halted.

Along with vaccine considerations, a number of states are seeing important upticks in COVID-19 viral infections. One of many key movers has been in Michigan, the place new considerations could immediate one other 2020-type lockdown. Whereas it’s debatable whether or not such a transfer would negatively influence the U.S. on a big scale, it actually wouldn’t assist. For main pairs such because the EUR/USD, USD/CHF, or USD/CAD it’s anybody’s guess on how extra lockdowns will skew valuations.

EUR/USD Rallies As COVID-19 Dominates Early-Week Information Cycle

For the EUR/USD, the long-term uptrend stays intact. Charges are above the Macro-38% Fibonacci retracement, warranting a bullish bias.

Listed below are the important thing ranges to observe as this week unfolds:

• Resistance(1): Weekly SMA, 1.1985
• Help(1): 38% Macro Retracement, 1.1693

Backside Line: If the EUR/USD continues to rally, a shorting alternative could arrange within the coming classes. Till Friday’s shut, I’ll have promote orders within the queue from 1.1979. With an preliminary cease loss at 1.2009, this commerce produces 25 pips revenue on a short-term rejection of the 1.2000 deal with.