EUR/USD Continues To Rise After ECB Meeting - Kakiforex | Forex markets for the smart money. EUR/USD Continues To Rise After ECB Meeting EUR/USD Continues To Rise After ECB Meeting

March 14, 2021

EUR/USD Continues To Rise After ECB Meeting

 The US dollar strengthened in the New York session yesterday as the market reacted to the resumption of US treasury yields. Previously, declining treasury yields have pushed the US dollar to depreciate.

Still, analysts expect the US dollar to move weaker again to end trading this week following a report US President Joe Biden has signed a $ 1.9 trillion stimulus package.

Major Wall Street market indices posted gains for a third day with the S&P 500 hitting record highs of all time. Signals for market risk-on sentiment will add pressure to the US dollar.

In Thursday’s trading yesterday, the US dollar moved weaker in the Asian and European sessions before a fairly significant strengthening was exhibited in the New York session. The strengthening situation is seen temporarily before moving weak again until the end of the session.

On the price chart of the EUR/USD pair yesterday, the price has made a rise to the resistance zone of 1.19700 before the price decline again in the New York session following the strengthening exhibited by the US dollar.

In addition, the Euro currency was also weighed down by the outcome of the European central bank (ECB) policy meeting which saw interest rates continue to be maintained.

The ECB is poised to further increase quantitative easing to offset European bond yields which are seen to have a depreciating effect on the Euro.

However, the Euro was again seen moving strongly against the US dollar at the end of the New York session yesterday closing trading around the 1.19900 level.

The next price movement is seen to test the SBR (support become resistance) zone of 1.20000 with the expectation that the continued rise will lead to the previous focus zone around 1.20600-1.20900.

On the other hand, if the price plunges back below the 1.19800 level, the 1.19000 level in the RBS zone (resistance become support) will be the price support level.