empty
 
 
15.04.2021 01:42 PM
Will the EUR/USD pair stop weakening after it reaches the 1.2000 mark?

This image is no longer relevant

The US dollar's total decline worries the market, but there is still hope for its recovery. Experts are concerned that the growing inflation will let the US dollar fall.

On Wednesday, a series of March US CPI figures were released, which forced the market to closely monitor the current dynamics of the US dollar. It can be recalled that the CPI value was high, but the market ignored this fact by the end of yesterday's trading session. The focus was on the auction of 30-year US Treasury bonds. Its high demand supported their profitability. However, the US currency currently declined sharply. This trend continued on Thursday morning, April 15. Experts are afraid of the consolidation of this trend, although many of them expect the USD to recover in the medium term.

On the morning of April 15, the US currency updated its four-week low, which provoked another wave of tension in the market. The current situation has confirmed the Fed's statements about maintaining low interest rates and forced investors to adjust their actions. On Thursday, ithe EUR/USD pair traded at the level of 1.1981, with the Euro moving up to a four-week high of 1.1989. Analysts believe that this is a record figure for the last month.

This image is no longer relevant

In this context, the EUR/USD bulls had a hard time: a strong resistance level around the level of 1.1989 blocked their way up. In this case, the bears took control of the situation, even though experts are sure that everything can change. However, the bearish scenario is likely to be cancelled only if the strong level of 1.1990 is broken, and transition to the psychologically important level of 1.2000.

At the same time, specialists from the largest bank Credit Suisse do not rule out the continuation of the dollar rally against key funding currencies. The bank believes that the EUR/USD pair will stop rallying when it reaches the level of 1.2000. In addition, they admit that the bears can increase pressure if the so-called mirror level of 1.1953 is broken.

They also noted that the US dollar should not be ignored in the current situation, despite its weakening. The indicated currency may recover in the near future, gathering strength after a long correction. If so, they believe that the EUR/USD pair will face a new round of rally.

Larisa Kolesnikova,
Analytical expert of InstaForex
© 2007-2024
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

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