FXTM information and reviews
FXTM
93%
IronFX information and reviews
IronFX
92%
Libertex information and reviews
Libertex
91%
FXCC information and reviews
FXCC
90%
FxPro information and reviews
FxPro
88%
OctaFX information and reviews
OctaFX
86%

EUR/USD bounces off lows, stays near 1.2100 ahead of Lagarde


22 February 2021

EUR/USD meets selling pressure and drops below 1.2100. German IFO Business Climate improved further in February. ECB’s Christine Lagarde will speak later in the session. The single currency faces some mild selling pressure and drags EUR/USD to the 1.2090 region at the beginning of the week, just to rebound afterwards.

EUR/USD hovers around 1.2100 ahead of Lagarde

EUR/USD looks to rebound from the earlier drop to daily lows in the 1.2090 region on the back of the resumption of some buying interest in the greenback. The move, however, appears short-lived as market participants gauge the positive results from the euro docket coupled with the usual reflation trade the firmer vaccine rollout and prospects of extra US fiscal stimulus.

In fact, the German Business Climate tracked by the IFO survey improved to 92.4 for the current month, climbing at the same time to 4-month highs. Later in the session, the ECB’s C.Lagarde will speak on ‘Stability, Economic Coordination and Governance in the EU’.

Across the pond, the Chicago Fed National Activity Index and the Dallas Fed Manufacturing Index are all due later in the NA session along with the speech by FOMC’s M.Bowman (permanent voter, centrist).

What to look for around EUR

EUR/USD regained the 1.2100 mark and above after meeting decent support in the 1.2020 region during last week. The constructive outlook for the pair, however, is expected to remain unchanged in the longer run, always supported by the reflation/vaccine trade and hopes of a strong recovery in the region. In addition, real interest rates continue to favour the euro area vs. the US, which is also another factor supporting the EUR along with the huge, long positioning in the speculative community.

Key events in Euroland this week: ECB’s Lagarde will speak later on Monday and will participate in the G20 meeting of central bank governors and finance ministers on Friday. January’s final inflation figures (Tuesday). German final Q4 GDP results (Wednesday). European Council meeting (Thursday and Friday).

Eminent issues on the back boiler: EUR appreciation could trigger ECB verbal intervention, always on inflation issues. EU Recovery Fund. Huge long positions in the speculative community.

EUR/USD levels to watch

At the moment, the index is losing 0.03% at 1.2110 and faces the next support at 1.2023 (weekly low Feb.17) followed by 1.1999 (100-day SMA) and finally 1.1952 (2021 low Feb.5). On the other hand, a breakout of 1.2169 (weekly high Feb.16) would target 1.2173 (23.6% Fibo of the November-January rally) en route to 1.2189 (weekly high Jan.22).

#source

Share:


Related

The EUR/USD Price Prediction 2022. The Bulls or the Bears, Who Will Prevail?
The EUR/USD Price Prediction 2022. The Bulls or the Bears, Who Will Prevail?

Euro/US Dollar (EUR/USD), for which we will provide the price forecast for the year 2022, is the most actively traded currency pair on the foreign exchange market, also known as Forex or FX...

30 Nov 2021

The demand in the greenback is increasing
The demand in the greenback is increasing

After making a short pause on Friday, EURUSD is falling again. The major currency pair is under pressure again after a short break. The current quote for the instrument...

29 Nov 2021

The Euro's oversold is a sign for more volatility to come
The Euro's oversold is a sign for more volatility to come

The Euro fell against the dollar to 1.1200, a new 16-month low, having lost more than 4% in the last four weeks. The downward trend in the single currency accelerated...

26 Nov 2021

EURUSD is knocked out again
EURUSD is knocked out again

After testing another “bottom”, the major currency pair is consolidating. EURUSD continued falling and tested another low yesterday; right now, it is consolidating....

25 Nov 2021

EUR/USD seems vulnerable near multi-month low
EUR/USD seems vulnerable near multi-month low

The EUR/USD pair remained on the defensive through the Asian session and was last seen trading around the 1.1270-65 region, just a few pips above a 16-month low touched on Friday...

22 Nov 2021

EUR/USD snaps two-day rebound near 1.1350 as USD tracks firmer yields
EUR/USD snaps two-day rebound near 1.1350 as USD tracks firmer yields

EUR/USD stays pressured around an intraday low of 1.1352, down for the first time in three days ahead of Friday’s European session. In doing so, the major currency pair reacts...

19 Nov 2021


HotForex information and reviews
HotForex
85%
XM information and reviews
XM
80%
FXCM information and reviews
FXCM
79%
AvaTrade information and reviews
AvaTrade
76%
LegacyFX information and reviews
LegacyFX
75%
FP Markets information and reviews
FP Markets
72%

© 2006-2021 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.