The bullish rebound gains of the EUR / USD currency pair last week which peaked with the test of resistance level 132.70, are subject to setbacks at the start of this week’s trading session.
Indeed, it fell to the 131.77 support level before settling around the 131.90 level at the start of today’s session.
Investors have returned to safe-haven stocks in light of fears of a rapid spread of the Corona Delta variable, which threatens global efforts to contain the outbreak, and therefore the future of the global economic recovery. Recently, Italian health and regional authorities have urged people not to go on vacation until after being vaccinated, as the delta variant of COVID-19 has become more prevalent in the country.
Virologists in Italy are issuing warnings that the virus carrying this variant is more transmissible and less sensitive to COVID-19 antibodies. Italians in some places are increasingly failing to show up for the second dose of the vaccine, or even sticking to appointments for the first, as the holiday season approaches. So far, around 30% of people in Italy have completed the coronavirus vaccination.
In the country of 60 million people, doctors are particularly worried about the 2.7 million people over 60 who have not registered for their first dose.
Officials said the Romanian capital did not register any new cases of the coronavirus on Sunday. Just a few months ago, the intensive care units in Bucharest were expanded to capacity as the cumulative infection rate for 14 days exceeded 7 per 1,000 inhabitants. Now the capital’s infection rate – the same as that of the country as a whole – is only 0.05 per 1,000 inhabitants. Romania’s immunization campaign saw nearly 9 million doses of the vaccine delivered in the country out of over 19 million, but there are now concerns as daily doses of the vaccine have slowed considerably and only 23% of the population entire country is vaccinated against COVID-19.
Since the start of the pandemic, 1.08 million people in Romania have tested positive for COVID-19 and more than 33,000 people have died.
On the other hand, Tokyo recorded 386 new cases of infection on Sunday, up from 376 the week before, as the capital grew every week for the eighth day in a row. Japan had 794,457 cases and 14,657 deaths on Saturday.
From the technical analysis of the pair: On the daily chart, the price of the EUR / USD currency pair is still trying to move back to the neighborhood of its ascending channel. This can happen if it breaks above the 133.20 resistance level again. Bears are determined to re-enter psychological support 130.00 to confirm their control over performance. It must be considered that the attempt was close, as over the past week the pair has fallen to the 130.03 level. The pair will be affected today by the extent to which investors are taking risks or not, as well as the reaction to the announcement of German inflation figures and new statements from ECB Governor Lagarde.