The EUR/USD price dropped for the second consecutive months in February as traders started to worry about low inflation. Today, the EURUSD is trading at 1.2080, which is below the year-to-date high of 1.2345.
EUR/USD news: In February, the top concerns among traders was the rising inflation data from the United States. Data revealed that the headline consumer price index (CPI) rose by 1.4% in January this year. And analysts believe that the CPI will rise by 2% this year if the Senate manages to pass the next stimulus package.
As a result, the yields on the Treasury yields soared in February. This month, the focus will be on whether the Senate will pass the stimulus package. Other important events will be this week’s nonfarm payroll numbers and the Fed and ECB interest rate decisions scheduled for March 17 and March 11, respectively.
EUR/USD March forecast
The weekly chart shows that the EUR/USD has been in consolidation mode in the past few weeks. It remains slightly above the 25-period and 15-period exponential moving averages (EMA). Also, the pair seems to be forming a bullish flag pattern. Therefore, in my view, the EURUSD price will bounce back this month and possibly retest the resistance at 1.2400. However, a drop below 1.1958 will invalidate this trend.
EURUSD technical chart