Euro remained well supported by the latest optimism over a landmark agreement on the EU’s €750 billion pandemic recovery fund – aimed at aiding the region’s worst-hit economies. It got an additional boost from Monday’s release of German IFO Business Climate Index, which climbed to 90.5 in July as against the anticipated rise to 89.3 from 86.2 previously.

On the other hand, The release of mixed Durable Goods Orders data from the US. The headline orders rose 7.3% MoM in June, slightly better-than-expected. Excluding transportations, orders increased by 3.3% and ex-defense, orders were up 9.2%, both missing consensuses estimates.

Senate Republicans unveiled a package of economic support bills worth an estimated $1 trillion that would cut the federal subsidy for unemployment benefits by two-thirds from the end of September. Thereafter, the payments would be combined with state benefits to replace 70% of lost wages. Democratic Party politicians, who control the House of Representatives, criticized the move as removing a vital support for over 16 million people currently claiming unemployment benefits.

In the meantime, Moderna Inc final stage of trials for its experimental drug for treating the Covid-19 virus. Pfizer and its German partner, Nasdaq-listed Biotech Se also announced that they would start a hybrid stage 2/stage 3 trial for their candidate vaccine. The rapid progress in vaccine development  – albeit progress that has no guarantee of ultimate success – comes at a time when the number of new infections globally is running at a record high. The rate of new infections in the U.S. appears to have slowed somewhat in response to a tightening of regulations across the south and west of the country, the number of new cases dropping to 56,336 on Monday, after running well over 60,000 last week.

EUR/USD 4 Hour Chart:

Support: 1.1668 (S1), 1.1585 (S2), 1.1529 (S3).

Resistance: 1.1807 (R1), 1.1864 (R2), 1.1947 (R3).

Currently, EUR/USD is trading at a bullish trend but the recent update can make Safe-haven asset strong against Euro. Thus the trend seems mixed for the pair.