The Euro may collapse after the headline

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World markets were in hiding waiting for the main event of the day and, apparently, of the week – speech of the head of the fed. Many believe that the Powell speech will shake almost all asset classes and in particular the us dollar pairs. Stock markets, too, are not without interest will follow the report of the new President of the Central Bank, especially given the recent nervousness in global indices, which we observed in early February.
Currency pairs konsolidiruyutsya in close ranges, not daring to sudden movements. EURUSD is stuck around 1.23 and in recent days shows a neutral trend. From a technical point of view, significant support is located near the psychological level of 1.22,the testing of which will worsen the short-term picture for the pair. This development will be possible in the case of the widespread recovery of demand for the U.S. dollar.
It is noteworthy that the quotations of the main currency pair hold below the 20-day moving average since February 20. Now this line runs in the area of 1.2360, and her confident breakout will open the way to around 1.24, a confirmation of the breakout of which will be a daily close above the local resistance 1.2410.
In any case, after a week of consolidation and a possible exit from the current range has increased and the single currency began to experience difficulty attracting strong demand, which suggests there is downside risks in the short term and, accordingly, the probability of the bearish scenario for EURUSD.
Michael Mashchenko,
Analyst social network for investors
eToro in Russia and the CIS