EUR/USD Growing Actively
Dmitriy Gurkovskiy | Feb 22, 2021 07:59AM ET
In the last week of February, the main currency pair is actively growing, trading near 1.2123.
On H4, EUR/USD reached the aim of the wave of growth–1.2100. Currently, a consolidation range is forming around this level. The range got extended to 1.2144 and is correcting today to 1.2100 (testing it from above). After the correction is over, another structure of growth to 1.2144 can develop. With a breakaway of this level upwards, growth to 1.2190 might begin.
Technically, this scenario is confirmed by the MACD oscillator. Its signal line is in the histogram area and broke through zero, which suggests further growth of the price chart.
On H1, EUR/USD is declining to 1.2100. Upon reaching this, we expect growth to 1.2144.
Technically, this is confirmed by the Stochastic oscillator. Its signal line is trading under 50 and goes on declining to 20. We expect it to bounce off this level and head for 80.
On one hand, currency markets are becoming keen on risk, attracting buyers. On the other hand, the weak weekly report on the employment market did not make Biden’s administration less optimistic about the soon launch of the stimulation program sized 1.9trillion USD. These factors together played against the USD.
For example, the number of unemployment claims last week rose to 861 thousand against the forecast 775 thousand and revised last value of 848 thousand. Clearly, the employment sector remains extremely unstable, hence, the time when sustained economic growth will start remains unknown.
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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