EURUSD has shown a good recovery after retesting its lowest support levels in 2022 at $1.0359 created during the second week of June. The pair had formed a double bottom at this level, coinciding with its lowest level created previously in May 2022 at $1.0348.
The bulls have since then pushed the price higher, attaining a maximum level at $1.0602 before a short retracement, bringing the price lower to the support at $1.0545 last week.
Nevertheless, EURUSD has started the new week on a positive trend, showing bullish solid momentum and readiness to revisit its support at $1.0602. The price is currently at $1.0576 during the Asian session today. And with the dollar index losing strength during this session, it appears more likely that this current target can easily be achieved today.
However, investors are currently awaiting the release of the report on the US durable goods orders and the core durable goods statistics. We have discussed the impact of this data and the other factors influencing the EURUSD pair in the following paragraphs below.
Factors that influence the EUR/USD pair today
- German Buba Monthly Report: This report contains relevant articles, speeches, and statistical tables which assist investors in analysing the current and future economic performance of the country’s currency, especially from the bank’s viewpoint. A hawkish report from this data is perfect for the Euro.
- G7 Meeting: The G7 meeting is attended by the finance ministers and central bankers from seven industrialised nations such as France, Germany, Canada, Italy, Japan, the UK, and the US. The G7 meeting is an important economic event in the forex market as the decisions of this body during their meeting exert significant influence on the currency market, especially on EURO, Dollar, and pounds.
- US Core Durable Goods Orders: The Core DGO measures the change in the value of new purchase orders placed with manufacturers for durable goods, excluding transportation items. The Core DGO report is a significant indicator of the manufacturers’ strength and forecasted productivity. An increase in the digits for this report is very healthy for the US dollar. The forecast for this data is 0.4%, the same as the previous record.
- US Durable Goods Orders: This measures the change in the value of new purchase orders placed with manufacturers for durable goods. This data is usually the primary indicator for forecasting if the manufacturers will likely increase their production rate. A higher reading from this data will strengthen the US dollar. This means a decline in EURUSD and vice versa. The forecast for this data is 0.1%, while the previous record was 0.5%.
- US Pending Home Sales: This data measures the change in the number of homes under contract to be sold but still awaiting completion and excludes the new construction. This report is usually an indicator of the country’s economic health, as more home sales bring about more economic engagements. A higher reading from this data is perfect for the US dollar. The forecast for this data is -3.5%, while the previous record was -3.9%.
- ECB President Lagarde Speech: The ECB President will be delivering a welcome speech at the ECB Forum on Central Banking in Portugal today. Her tone of voice will probably help investors predict the committee’s direction on the interest rate hike in July.
