EUR / USD fell from highs, yielding to the strength of the dollar. According to Yohai Elam of FXStreet, a bearish attack at 1.20 looks imminent as markets see the order book half empty.
Upbeat news from Brussels is not enough to help euro
“The vaccination campaign in the old continent is gaining momentum, but it looks like this is already affecting the price. Instead, the markets seem to have focused on some sober comments from Jerome Powell, chairman of the Federal Reserve. Despite acknowledging America’s recovery, the influential central banker described the recovery as “patchy” and stressed that unemployment among those earning less is still high. ”
“Coming back from a pandemic may be too quick and some cooling may be required. These fears are affecting market sentiment and pushing the safe haven dollar higher. Will it continue? In general, supply issues as well as virus-related issues need to be addressed. However, in the short term, various problems are likely to cause nervousness, and this may push the dollar up. ”
“Support is expected at 1.2015, the weekly low, followed by 1.1990, a double bottom and range separator. Some resistance is found at 1.2075, the high of the week, followed by 1.2117, the swing high of late April. ”