14.01.202115:14 Forex Analysis & Reviews: Forecast for EUR/USD. News about Trump's impeachment comes in spotlight

Donald Trump became the first president in American history to be impeached twice. Unlike the first impeachment proceedings largely supported by Democrats, this time, 9 Republican Congressmen voted for it.

The impeachment resolution has been sent to the Senate where Republican Mitch McConnell should decide whether to start the impeachment trial. However, he has already said that there is literally no chance of impeachment, as well as no time for a trial. The authorities should focus on preparing for the transfer of power. "Even if the Senate process were to begin this week and move promptly, no final verdict would be reached until after President Trump had left office. This is not a decision I am making; it is a fact," McConnell said. "In light of this reality, I believe it will best serve our nation if Congress and the executive branch spend the next seven days completely focused on facilitating a safe inauguration and an orderly transfer of power to the incoming Biden Administration."

Therefore, many experts do not rule out the possibility that Trump could be impeached after he leaves office.

It seems that Democrats use all tools at their disposal to humiliate Trump, and most importantly, to ban him from running for president again.

Now lawmakers are trying to find out whether a Senate trial can take place after the president leaves office since there is no clear answer to this question in the Constitution.

Judge's view

A prominent retired federal appeals court judge, J. Michael Luttig argues that the Senate cannot judge Trump after he leaves office.

"The very concept of constitutional impeachment presupposes the impeachment, conviction and removal of a president who is, at the time of his impeachment, an incumbent in the office from which he is removed," Luttig stressed.

A member of the US House of Representatives, Marjorie Taylor Green, has said that she plans to submit to Congress a draft resolution on the impeachment of Joe Biden on his first working day as the president.

"I would like to announce on behalf of the American people, we have to make sure our leaders are held accountable, we cannot have a President of the United States who is willing to abuse the power of the office of the presidency and be easily bought off by foreign governments, foreign Chinese energy companies, Ukrainian energy companies, so on January 21, I. will be filing articles of impeachment on Joe Biden," Greene told Newsmax's Greg Kelly.

Exchange Rates 14.01.2021 analysis

What else could support growth of USD?

On Monday, I wrote how oversold the US dollar was against its main competitors. The US dollar index in 2020 sank by more than 13%. So, maybe it may rebound soon.

At the same time, there is news that the number of hospitalized US citizens diagnosed with COVID-19 is declining in recent months. The situation is likely to improve in the near future.

The US dollar may rise amid such news.

Expectations and prospects

Over the day, the euro fell to 1.2130 where it was consolidated at the beginning of the week. The correction from the high of the medium-term upward trend is still relevant but for its resumption, the quote needs to stay below 1.2130 in the four-hour period. If so, it may decline to the of 1.2070-1.2000.

If it does not consolidate below the current correction low, it may stay flat in the range of 1.2130/1.2175.

As for the daily period, there is a constant medium-term upward trend. There is still no full-size correction move. Besides, the US currency is still oversold.

Exchange Rates 14.01.2021 analysis

Technical analysis

Analyzing different sectors of timeframes (TF), it is clear that the indicators of technical instruments on the minute, hour, and intraday periods signal a sell-off due to the price entered in the correction phase.

Exchange Rates 14.01.2021 analysis

Weekly volatility/ Measurement of volatility: Month; Quarter; Year

(January 14, the calculations were made at the time of publication of the article)

The dynamics of the pair is only 35 pips, which is considered a low value in the market. The pair is likely to break out from the range of 1.2130/1.2175 and rise.

Exchange Rates 14.01.2021 analysis

Key levels

Resistance levels: 1.2350**; 1.2450**; 1.2550***; 1.2825.

Support levels: 1/2130*; 1.2000***; 1.1890-1.1900-1.1920**; 1.1810*.

* Periodic level

** Range level

*** Psychological level

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Gven Podolsky,
Analytical expert
InstaForex Group © 2007-2021
Benefit from analysts’ recommendations right now
Top up trading account
Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.

Can't speak right now?
Ask your question in the chat.