EUR/USD Decreases Again After Reaching 2 -Month High - Kakiforex.com - Financial Market Media No. 1 in the World EUR/USD Decreases Again After Reaching 2 -Month High EUR/USD Decreases Again After Reaching 2 -Month High

April 27, 2021

EUR/USD Decreases Again After Reaching 2 -Month High

 The US dollar continued to move slowly earlier this week with investor vigilance ahead of the Federal Reserve (Fed) policy meeting as well as economic growth focus data for the first quarter of this year in the United States (US).


With the expectation of no change to the Fed’s key policy, investors will pay close attention to a follow -up statement by Fed Chairman Jerome Powell in his speech for the latest indicators.


On the price chart for the EUR/USD pair yesterday, the price has started trading earlier in the week with a rise to the latest high in the Asian session close to the level around 1.21200.


Yet the European session and the beginning of the New York session saw a resumption of price declines with a slight strengthening of the US dollar supported by a rise in US treasury yields.




Having almost reached the 1.60%level, US treasury yields then declined again making the US dollar move again weakly until the end of the New York session yesterday.


The decline only tests the support level of Moving Average 50 (MA50) in the 1 -hour time frame of price movement in the RBS (resistance become support) zone of 1.20600.



Continuing Asian session trading on Tuesday, the price moved slowly in the RBS zone 1.20900-1.20600 hovering at the MA50 level for further price movement signals.


If the price manages to continue rising higher from that zone, the price is likely to overcome yesterday’s price high level to head to the next focus zone at 1.21500-1.21800.


The rise to the zone will record the latest high in a 9 -week trading period.


However, if the price drops below the RBS zone of 1.20600, the lower decline will be expected again towards the previous RBS zone of 1.20000.


That level last week has managed to support the price to rise again from the decline that took place.