Panic Triggers In The Market, EUR/USD Plunges 100 Pips! - Kakiforex.com - Financial Market Media No. 1 in the World Panic Triggers In The Market, EUR/USD Plunges 100 Pips! Panic Triggers In The Market, EUR/USD Plunges 100 Pips!
InstaForex

June 14, 2021

Panic Triggers In The Market, EUR/USD Plunges 100 Pips!

 The close of trading last week saw the US dollar show a rebound following the publication of US consumer confidence data with rising figures.


But analysts also saw a profit-taking situation happening over the weekend by investors ahead of the FOMC meeting which will be the main focus this week.




Observed the price movement on the chart of the EUR/USD currency pair last Friday made a drastic decline with around 100 pips of daily decline recorded.


Deviating from expectations for the price to continue higher, the price has dropped to reach the level of 1.20900 in the support zone.


The Euro currency is also seen as failing to curb the dominance of the US dollar following the outcome of the European central bank (ECB) meeting last week also projecting for loose policies to continue to be maintained to support the economy.


Still, ahead of the FOMC meeting early Thursday morning, will the US dollar be able to continue to strengthen and push prices lower?



If the price manages to continue the decline past the support zone 1.20900-1.20600, the decline is seen to lead to the next support level around 1.20000.


Previously, the level has managed to support the price from continuing to fall lower during April and May trading.


On the other hand if the price returns to make a rise again, the resistance zone at 1.21500-1.21800 will be retested to signal whether a higher rise will occur or vice versa.


Passing that zone will return to the previous bullish expectation for the price to head towards the resistance zone at 1.22500 which was tested last May.