GOLDWELL：Daily Market Recap – EURUSD Euro tries to rebound from major support

The EURUSD has been trying to rebound since Friday after returning to test a major support oblique last Thursday following the economic fears posed by the spread of the Delta variant.

Indeed, risky/cyclical assets were under pressure for most of last week and experienced a slight sell-off last Thursday following the Japanese government's decision to place Tokyo under a state of emergency for the fourth time since the pandemic began, preventing the Olympic Games from being held with spectators.

Investors will continue to closely monitor the health situation, especially hospitalization data, which is more indicative of future health restrictions. As long as hospitalizations remain low, 'cyclical' currencies like the euro are more likely to outperform vs the dollar.

From a technical analysis point of view, the outlook for EURUSD became bullish again on Friday as the exchange rate exited the descending wedge at the top. This breakout from the top of the downtrend paves the way for EURUSD to rebound to $1.20 in the near term, and then eventually to the June high of $1.2243.

(Chart Source: Tradingview 12.07.2021)

Disclaimer: This material has been created for information purposes only. All views expressed in this document are my own and do not necessarily represent the opinions of any entity.