EUR/USD is charting gains with the US dollar on the offer despite corona virus concerns and weak China data. Fears over the new strain of the corona virus are forcing major nations to take stricter steps.

The US corona virus outbreak will likely get worse in coming weeks, Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, said on Sunday while speaking at an NBC event, while adding that hospitals around the country are reporting shortages of ICU beds for patients.

“You usually have a couple of week lag before you see an additional uptick of cases, which is always followed by hospitalizations and deaths,” Fauci said.

Other advanced nations are also taking steps to counter fears over the new strain of the virus. New Zealand has tightened border controls; South Korea has imposed a country-wide ban on private gatherings of more than four people. Scotland and Britain are also mulling stricter restrictions.

Further, China’s Caixin Manufacturing PMI, which focuses on small and medium-sized export-oriented units, released early Monday showed the activity slowed in December. The gauge fell to 53.00 in December from November’s 54.9, missing the expected reading of 54.9. The government PMI also declined to 51.9 in December from 52.1 in November, data released last week showed

So far, however, the dollar has refused to show signs of life. Investors continue to offer the greenback, possibly on expectations that the Federal Reserve would keep rates low for a prolonged period, and the global economy would chart a swift recovery on corona virus vaccines.

EUR/USD 4 Hour Chart:

Support: 1.2179 (S1), 1.2144 (S2), 1.2079 (S3).

Resistance: 1.2279 (R1), 1.2344 (R2), 1.2379 (R3).

In the prevailing market condition where USD seems till weak, we expect a bullish trend for EUR/USD.