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EUR/USD Breaks Major Support, 1.17 Next Target

EUR/USD is at 2021 lows after failing to break above the 1.20 level on both the ECB and the Fed meetings. The rejection brought more weakness on the pair, and now it made a new low for the year with further pressure to decline.

The EU Summit at the end of the trading week will focus on the pandemic and how come that one of the most powerful economic blocs in the world was unable to secure enough vaccines for its population. Also, as it was announced yesterday, U.S. President Joe Biden will join the talks in a sign of reconciliation of the relationships between the two parties.

The third wave of the pandemic, new lockdowns, as well as uncertainty about if and when the European Union can reach herd immunity are all factors pointing to further EUR/USD weakness. On top of that, the ECB has increased the purchases under its bond-buying program, weighing on the common currency.

EUR/USD Technical Analysis

While declining, the EUR/USD pair forms a falling wedge. However, the wedge does not appear at the end of a bearish trend, so bulls may take it with a grain of salt.

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Daring bulls may want to wait for the EUR/USD pair to reach the opposite edge of the pattern before going long with a stop at 1.15 and a target of 1.19 or even 1.20.

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EUR/USD Price Forecast

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