February 23, 2021

To what extent will EUR / USD continue to rise?

Market sentiment that is still not in favor of the US dollar has seen the US currency fall to a 6-week low giving room for other major currencies in the market to rise.

Investors' focus shifted to Federal Reserve (Fed) Chairman Jerome Powell's response to inflation expectations.

The EUR / USD pair price chart earlier this week saw the price continue to rise to the resistance zone last week again above the level of 1.21500.

The price decline was seen in the European session yesterday, but the price that tested the support level of Moving Average 50 (MA50) in the 1 hour time frame and also the price level of 1.21000 resumed the surge.

Investors are still watching the price move in a bullish trend with expectations to reach higher levels this week past the resistance tested last week.

A higher price increase is expected to reach the level of 1.22200 and also 1.22500.

However, if the price falls again from the resistance zone 1.21500, the price will drop to the RBS zone (resistance become support) around 1.20900-1.20550.

A lower drop will test last week's support level around 1.20300 before heading to the 1.2000 concentration level.

As for the Euro, after investors saw positive figures published on German business climate survey data yesterday, the focus will be on European inflation data soon.