The US dollar slipped to a 3-week low as US treasury yields remained below the highs reached in previous weeks resulting in less attraction to the US dollar.
Additionally, Federal Reserve (Fed) Chairman Jerome Powell reiterated his stance that the central bank is unlikely to raise interest rates until the end of 2022 as the economy is heading toward rapid growth and more jobs are created.
Meanwhile European Central Bank (ECB) President Christine Lagarde responded to the US fiscal with expectations of pushing European growth to 0.3% over the medium term.
Hence also supports the Euro currency to move slightly stronger against the US dollar in the market.
As shown on the chart of the EUR/USD pair this week, the price continues to record a rise to its latest 2 -week high.
As of the New York session, the price has reached a high around 1.19890 just a little further to reach the level of analysts ’expectations at 1.20000.
The price remains moving in a bullish trend after the price surged from the 1.19000 zone and continues to be above the Moving Average 50 (MA50) support level on the 1 -hour time frame for an indication that the price will continue to rise.
If the price manages to continue rising and breaks the resistance of 1.2000, analysts will change the bullish target higher to the next focus zone at 1.20600-1.20900.
However, if the price plummets again, the price support zone at the level of 1.19000 will be retested and investors will assess the price reaction in that zone whether the price will resume rising or fall lower.
If the price falls lower, the RBS (resistance become support) zone of 1.18000 will be the focus of the price for further decline.
