Euro May Recover Some Losses
Dmitriy Gurkovskiy | Mar 22, 2021 08:51AM ET
On another Monday of March, EUR/USD is looking capable of starting a certain correction but the long-term pressure didn’t go anywhere. The pair is mostly trading at 1.1882.
The stoppage of the anti-coronavirus vaccination with AstraZeneca (NASDAQ:AZN) in Europe made investors doubt the fact that the herd immunity would be developed soon. The sooner Europe removes all lockdowns, the better and faster the region’s economy may recover. Serious social restrictions are still effective in several countries and they continue preventing European economies from recovering.
The “greenback”, in its turn, is feeling support from the US bond yield growth and that’s the aspect, which is very hard to resists.
In the H4 chart, EUR/USD is consolidating around 1.1933; right now, it is trading not far from the downside border of this range. Possibly, the pair may grow to break 1.1933 and then continue moving upwards with the target at 1.2022. From the technical point of view, this scenario is confirmed by MACD Oscillator: its signal line is moving below 0 and may grow to break this level to the upside.
As we can see in the H1 chart, after completing the correction at 1.1877, EUR/USD has broken the descending channel. The key scenario implies a new rising wave towards 1.1947, which may later be followed by another correction to reach 1.1900. After that, the instrument may form one more ascending structure with the target at 1.1977. From the technical point of view, this scenario is confirmed by the Stochastic Oscillator: after breaking 50 to the upside, its signal line is steadily growing towards 80.
Disclaimer: Any forecasts contained herein are based on the author's particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.
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