EUR/USD Starts Signaling To Plunge? - Kakiforex.com - Financial Market Media No. 1 in the World EUR/USD Starts Signaling To Plunge? EUR/USD Starts Signaling To Plunge?
InstaForex

May 21, 2021

EUR/USD Starts Signaling To Plunge?

 Examining the details of the latest FOMC meeting minutes report that was the focus of investors earlier this morning, there are indications that talks for reducing bond purchases for an earlier period after the Federal Reserve (Fed) maintained a loose monetary policy.


The situation has been a factor that triggered the resurgence of the US dollar in the market to regain strength after showing a dismal performance since the beginning of the week.




It can be seen on the price charts of the major currency pairs that almost all of them have signaled a change in the direction of price movements following the re -strengthening of the US dollar.


On the chart of the EUR/USD pair, the price that has made a rise near the high of 1.22500 started to decline again until the end of the New York session.


The decline has returned to the RBS (resistance become support) zone 1.21800-1.21500 which was previously the resistance zone last week.


While still moving in a bullish trend, a decline below the Moving Average 50 (MA50) support level in the 1 -hour time frame of the price movement is seen to give an early signal for a bearish trend change for the EUR/USD chart.



A decline below the RBS zone 1.21800-1.21500 will further strengthen expectations for the price to continue its decline on a bearish trend. Prices are still moving flat in the zone during the Asian session this morning (Thursday).


Further declines are seen heading towards the lower RBS zone at 1.20900-1.20600 before a continued decline will test the key support zone at 1.20000.


On the other hand, if the price just makes a correction, the price increase from the RBS zone 1.21800-1.21500 will head back to the resistance level of 1.22500.


Overcoming the resistance will further make the high of 1.23000 as the latest bullish target destination while continuing to record the latest high of 4 months.


Investors will be more vigilant for both the Euro and US dollars over the weekend ahead of economic sector data in Europe and the United States.