The EUR/USD seems to be under downward pressure on the US dollar. The spread of the Delta Corona virus variant has worried investors about a global recovery and the dollar was nearing a record high on Monday as it sent money to safety. Daily infections are on the rise from the US and Europe to Asia, and every day there are more than half a million new cases worldwide for the first time since May. Traders are breathing down their necks as the UK lifts most social restrictions.

The U.S. Congress for Bloomberg recently passed a bill that would “prevent scientists and academics from participating in U.S.-funded research projects to promote U.S. research and development.” In the same line, US Treasury Secretary Janet Yellen said, “The China Trade Agreement Affects American Consumers, New York Times (NYT). Elsewhere, the European Central Bank (ECB)’s targets for future moves add to the burden on the euro/US dollar, despite rejections by Federal Reserve (Fed) policymakers after they showed readiness to accept the above target inflation.

On Friday, US consumer-centric data came in mixed, mostly soft, but the details suggested strong inflation expectations and were positive for the US dollar. When the index figures for global procurement managers are released, the week’s data calendar is very blunt until Friday, with policy and virus response expected to focus in the meantime. China’s benchmark lending rate is likely to be cut on Tuesday, and the European Central Bank’s guidance on Thursday is likely to signal changes.

Not only are the increasing numbers of Covid, But also the fears that the virus variant is spreading fast, resisting vaccines, pushing global policymakers to reconsider the COVID-19 war. In anticipation, in the absence of key data / events, EUR/USD traders will keep their eyes on sentiment headlines. Moreover, the reports of the BUBA report in Germany will also be important as they support the changes in Berlin’s monetary policy to control the hot inflation problem.

EUR/USD 4 Hour Chart:

Support: 1.1790 (S1), 1.1776 (S2), 1.1760 (S3).

Resistance: 1.1820 (R1), 1.1836 (R2), 1.1850 (R3).

Amidst the above data the Europe is on sluggish upon soft US dollar and Covid circumstances. We expect bearish trend for EUR/USD.