EUR/USD Still Has Not Broken The Wall $ 1.2000 - - Financial Market Media No. 1 in the World EUR/USD Still Has Not Broken The Wall $ 1.2000 EUR/USD Still Has Not Broken The Wall $ 1.2000

April 16, 2021

EUR/USD Still Has Not Broken The Wall $ 1.2000

 The US dollar failed to show strength in the New York session despite US retail sales data for March published yesterday with figures soaring higher than expected.

The continued depreciation of the US dollar was driven by a sharp fall in 10-year US treasury yields to hit 1.53%.

A slight increase in US treasury yields in the Asian session this morning is seen to see the US dollar rise slightly.

The Federal Reserve (Fed) is also still reiterating their commitment to keep interest rates at a low near zero for the next few years despite discussions emerging for a reduction in bond purchases.

It can be seen that the price movement on the chart of the EUR/USD currency pair is flat and still failed to break the resistance zone of 1.2000 following the US retail sales data published positively curbing further fall of the US dollar in the New York session.

After the price moved above the support level of the Moving Average 50 (MA50) on the 1 -hour time frame at the end of the New York session, the price then showed a decline below that level during the Asian session on Friday morning.

Analysts still expect the US dollar to continue to move weakly, but it is likely that profit-taking activity factors on the weekend could boost US dollar trading again.

If the US dollar manages to strengthen and depress the price in subsequent sessions, the price could drop all the way to the support zone at 1.19000.

Yet if the price continues to rise, the resistance zone of 1.2000 needs to be broken before higher upside expectations are seen heading up to the focus zone at 1.20600-1.20900.