InstaForex

July 22, 2021

EUR/USD Futures Market Plunges After ECB Meeting Ends?

 The US dollar rebounded from a 3 -month high in Wednesday's trading as market risk sentiment eased slightly while the US stock market showed positive gains. Even so, investors remain vigilant.


The US dollar as a safe-haven currency weakened again giving room for other major currencies in the market to rise.


However, the US 10-year treasury yield showed an increase to 1.30% after declining to about 1.13% previously.


The Euro also showed an improvement against the US dollar, but investors will be cautious as they await the outcome of the European central bank's policy meeting today.




On the price chart of the EUR/USD pair, the price moving lower around the level of 1.17500 yesterday is seen to rise again up to the level of 1.18000.



The price has also passed the Moving Average 50 (MA50) resistance level on the 1 -hour time frame for an early signal of starting a bullish trend.


A rise above the 1.18000 zone will give the expected price increase to the level of 1.19000 in the SBR zone (support become resistance).


Still, investors expect a high probability for the European Central Bank (ECB) to continue its loose policy at the latest meeting and negatively impact the movement of the Euro.


The price could fall up to the latest support zone at 1.17200-1.17000 while recording the latest low since last April.