Today’s market session kicked off Europe with an exciting moment on this August. Positive economic data from the Eurozone provided support, while rising Asian equities provided support to European majors. Production of PMI numbers for the month of July focused on retail sales from Germany at the beginning of the week. German retail sales rose 4.2% in June, following a 4.6% increase in May. Economists forecast a very moderate 1.5% increase on today.

The IHS Markit Eurozone Manufacturing PMI was 62.8 in July 2021, slightly different from the initial estimate of 62.6, but the lowest since June 63.4 and after March. Nevertheless, the sector has now recorded consecutive expansion months since July 2020, slightly lower than the latest reading June survey record. Output rose at a softer rate since February, while the growth rate of new business was close to the March survey record and new export orders continued to expand at a sharp pace.

In addition, amid a significant increase in job collection 24 years ago, employment levels have risen sharply since data collection began. Manufacturers continued to face significant supply-side challenges, with input lead times extended as one of the best degrees recorded in the survey. In the price front, input costs and output fees rose at record rates. Looking ahead, business confidence fell to a seven-month low, but overall remained strong.

On the other hand, the dollar retreated against the euro after soft US production data and growing concerns about the corona virus delta variation. U.S. yields fell on Monday following a report by the Institute for Supply Management (ISM), while U.S. manufacturing growth slowed for a second month in July.

It should be a Quiet day according to the economic calendar. The economic data of the eurozone are limited to employment figures from Spain. In the afternoon, factory orders from the United States will attract interest. As concerns about the economic outlook persist, weak numbers can be expected to test support for majors. Aside from the economic calendar, COVID-19 news updates and corporate earnings should also be considered.

EUR/USD 4 Hour Chart:

Support: 1.1854 (S1), 1.1837 (S2), 1.1816 (S3).

Resistance: 1.1892 (R1), 1.1913 (R2), 1.1930 (R3).

Amidst this above overall predictions and expectations we can see a upward moment for Euro. We expect a bullish trend for EUR/USD.