The Strengthening US Dollar Will Press EUR/USD Down To $ 1.8000 - Kakiforex.com - Financial Market Media No. 1 in the World The Strengthening US Dollar Will Press EUR/USD Down To $ 1.8000 The Strengthening US Dollar Will Press EUR/USD Down To $ 1.8000

March 17, 2021

The Strengthening US Dollar Will Press EUR/USD Down To $ 1.8000

 Following the release of US inflation data in the New York session yesterday, the US dollar was seen depreciating due to weak consumer price index data readings.


But the US dollar again closed the New York session with a rebound supported by rising US treasury yields.


Investors are wary ahead of the FOMC meeting that will have an impact on the movement of the US dollar. The market expects a positive economic growth projection in 2023 by the Federal Reserve (Fed).


The successful strengthening sustained by the US dollar will continue to put pressure on the Euro currency. The euro is also still affected by reports of side effects of the AstraZeneca vaccine where several countries in Europe have temporarily suspended vaccination programs.


Continuing trading in the Asian session on Wednesday, the US dollar was still seen moving strongly putting pressure on several other major currencies in the market.


Like the price movement on the chart of the EUR/USD currency pair, the price that made the rise in the New York session to the level of 1.19500 again plunged back to the price support zone of 1.19000.



The RBS (resistance become support) zone will also give investors an indication of the direction of the next movement based on price reactions.


If the price manages to continue lower, the bearish trend on the EUR/USD chart will push the price towards the support zone around 1.18000.


On the other hand if the price jumps from the RBS zone and passes the Moving Average 50 (MA50) barrier on the 1 -hour time frame, investors will return to see it as an early signal of the price bullish trend.


The resistance zone at 1.19600 will be tested before a higher rise in the price will head towards the SBR 1.2000 zone.