- After two consecutive days of gains, the EURUSD went down.
- The value of the US dollar continues to follow the yield on government bonds.
EURUSD daily analysis on August 24, 2021 this time discusses the Euro which continues to struggle to continue to recover, the rise of the
currency pair in the week on the previous day was due to the
risk-on atmosphere (describing market participants being optimistic about the prospect of improving economic conditions) supporting the decline of the US dollar. However, this did not last long. When the EURUSD daily analysis for August 24, 2021 was written by the
GIC team, the EURUSD was at the level of 1.1744. The lack of clarity on the virus conditions and geopolitical concerns related to Afghanistan and China are among the reasons for the EURUSD decline. Although Australia's Covid19 infections are easing from record highs, New Zealand Prime Minister Jacinda Ardern continues to warn of further spread of the Delta virus. In the UK, daily hospitalizations due to Covid19 are surging, the same is also happening in the US and prompting the Biden administration to accelerate vaccinations. Elsewhere, Britain called for an emergency video conference of Group of Seven (G7) leaders to discuss Taliban-related issues, as well as hinted that the U.S. Securities and Exchange Commission (SEC) would increase the difficulty of
listing Beijing-based companies. Beijing's crackdown on tech
stocks, the Sino-American upheaval and fears of a slowdown in economic recovery have worsened world economic conditions. The aforementioned factors weighed on the EUR/USD price, in a way that supported the
safe-haven demand of the US dollar, faster vaccination expectations and fewer opportunities in favor of the Fed's stimulus tapering helped
buyers for the pair remain positive. Preliminary US and Eurozone PMI data for August was weaker than expected, suggesting the need for further easy money policy. Prior to that, the President of the US central bank of Dallas, Robert Kaplan signaled to withdraw from
tapering due to the
How is the EURUSD technical analysis?
The EURUSD daily analysis is in a
bullish precaution in the near term, although the potential upside is limited as long as it is below 1.1750, the nearest
resistance level. The 4-hour chart shows that the pair has stabilized above the slightly
bullish 20 SMA, but has also held below the
bearish SMA longer. Technical indicators remain in positive levels, but the momentum is retreating while the RSI is flat around 59, indicating receding buying interest. Support levels: 1.1700 1.1660 1.1620 Resistance levels: 1.1750 1.1790 1.1820 This the daily analysis of EURUSD for August 24, 2021. You can read other articles in the
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