EUR/USD: Receding inflation concerns and covid developments to push the pair above 1.19

EUR/USD is hovering under 1.19 ahead of eurozone producer prices. According to FXStreet’s Analyst Yohay Elam, there are reasons to be cheerful, and these could come to dominate markets and boost EUR/USD. 

Time for a decisive move above 1.19

“The main source of fear came from the ISM Manufacturing Purchasing Managers' Index released on Monday. The most significant development comes from the Prices Paid component, which came off the highs. Overall, investors are now worried about growth peaking instead of relief that inflation is probably on its way down.” 

“COVID-19 cases are falling in the UK and Spain, the Western countries that were hit hardest and earliest in the current Delta variant wave. While they are still climbing in the US, more hesitant Americans are coming forward to get a jab.”

“Resistance awaits at 1.1905, which was July's peak. It is followed by 1.1950, 1.1975 and 1.2015, all levels that played a role in June.”

“Initial support is at the 1.1850 rough, which is also where the 200 SMA hits the price. It is followed by 1.1825, a swing high from late July and then by 1.1775 and 1.1750.”