According to FXStreet analyst Yohai Elam, the euro / dollar benefits from Fed Powell’s soft comments, but fears about the virus and the budget in Europe and profit-taking on Wall Street could provoke a setback.
Watch: EUR / USD Falls To 1.15 In Q2 On Slowing Dollar Strengthening – Credit Suisse
Reorientation to fundamentals could push EUR / USD down
“While the Federal Reserve is focused on results rather than prospects and continues to print dollars, Powell’s reports were not new. On Friday, investors already have a slightly different opinion – the recovery in US Treasury yields increased, supporting the dollar and pushing EUR / USD below 1.19. “
“The bears on the EUR / USD pair may have something to chew on in Europe. Isabelle Schnabel of the European Central Bank warned that a delay in EU bailout would be a “disaster.” She shed light on the problems with the distribution of the already agreed New Generation funds. “
“The most important problems of the old continent come from covid. The incidence is still high in Germany, France and Italy, and Spain has joined the new post-Easter rise. Moreover, several EU countries have banned the use of AstraZeneca vaccines for most adults, which could delay the roll-out of immunizations. ”
“Some support is expected at 1.1890, the daily low, followed by 1.1860, which softened the pair on Thursday. Resistance is at the April peak at 1.1925, followed by 1.1950 and 1.1990, with the latter being a double top. ”