The EUR/USD pair bounced from below 1.20 but does not act as bid against the dollar as other pairs do – for example, the GBP/USD or the AUD/USD. Various explanations exist, one of them being that Europe is still the region most affected by the pandemic, and many of its economies are in some kind of a lockdown mode.
Yesterday we saw the inflation data in the European Union and the Euro are. Core inflation jumped by most on record, reaching already the ECBs target. The EUR/USD pair, however, did not react for the simple reason that the move higher was priced in.
Jerome Powell’s testimony in front of the Senate Banking Committee yesterday failed to bring much change in the EUR/USD pair. Other pairs did react, but not this one.
EUR/USD Technical Analysis
From a technical point of view, we can make both a bullish and a bearish case. The bullish one calls for an inversed head and shoulders pattern that has a measured move above the January highs. The bearish case considers a triangle that should act as a continuation pattern, with the price currently testing the opposite trendline. Bears may want to wait for a break below the lower trendline and target new lows below 1.1950. On the other hand, if the inversed head and shoulders pattern holds, the chances are that the EUR/USD will make a new high.
Apple 5G iPhone shipments in 2020 may come weaker than expected, according to some analysts they estimate about 15 to 20 million units this year compared to a prior estimate of 30 to 40 million. TESLA Returns Above $1000 On Elon Musk’s Break-Even Optimism. Micron trades over 5% higher in premarket after the announcement of better-than-expected results. Micron reported a profit of 0.82/share, topping expectations of 0.77. The Revenues rose to $5.44 billion, also beating the forecasts of $5.31 billion.
Dow Jones futures are 0.25% lower at 25,434. The S&P 500 futures are 0.18% lower at 3,042, while Nasdaq futures are 0.07% lower at 9,966.
Don’t miss a beat! Follow us on Telegram and Twitter.
EUR/USD Price Forecast
More content
- Download our latest quarterly market outlook for our longer-term trade ideas.
- Follow Mircea on Twitter.
- Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.