The corona virus cases has increased to 190.862 totaling to 8895 death as reported by the German disease and epidemic control center, Robert Koch Institute (RKI), on Tuesday. Cases increased by 503 in Germany on Tuesday whereas Monday it was +537. The death count rose by 10, the tally showed. Estimation of the virus reproduction rate (R-value), the 4-day moving average, to be at 2.76 as of Monday. The 7-day average rate ticked lower to 1.83, still way above the key 1.00 threshold. Germany has started to reopen its economy but the fresh outbreak in North Rhine-Westphalia raises concern.

In this concerning situation, France has reopened almost all sectors. From June 15, museums, tourist sites, gyms, and swimming pools were also allowed to reopen from many parts of France. The country also reopened its borders to travellers from the Schengen area on the same day.

“There remains a degree of concern that a rise in infection rates … could well derail the prospects for a recovery as economies continue to try and re-open,” said Michael Hewson, chief market analyst at CMC Markets.

The European Union (EU) is hoping to revive investment talks with China on Monday, as it hosts calls with Chinese President Xi Jinping and Premier Li Keqiang. The EU wants “to give a new political impetus” to its relationship with China, an EU official, who didn’t want to be named due to the sensitivity of the talks, told CNBC Sunday.“We need the right tools to ensure that foreign subsidies do not distort our market, just as we do with national subsidies,” Margrethe Vestager, the vice president for the European Commission, said last week.

After a stunning recovery from March lows, the STOXX 600 has struggled to make headway in June as investors weigh the possibility of a swift return to economic growth against rising virus cases and the chances of renewed restrictions.

EUR/USD 4 Hours Chart:

Support: 1.1196 (S1), 1.1132 (S2), 1.1095 (S3).

Resistance:  1.1297 (R1), 1.1334 (R2), 1.1399 (R3).

All the efforts taken by Europe amid the risk sentiment and pressure on the dollar proves to reinforce EUR. We expect a bullish trend for EUR/USD.