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EUR/USD has failed to take advantage of Fed Chair Powell’s dovish words. A delay in vaccine deliveries to Europe and an extended German lockdown may weigh on the euro, according to FXStreet Analyst Yohay Elam.

Key quotes

“Powell could not have been more dovish. He said that any uptick in prices in the coming months is unlikely to be large or persistent and also dismissed fears that fiscal largesse would prompt inflation. The Fed is there to keep rates low and printing money as much as needed.  At least for the greenback, creating funds out of thin air means devaluation and the dollar indeed retreated across the board.”

“Europe has been lagging behind in its vaccination efforts and another blow has come from AstraZeneca. The British-Swedish firm told the EU that it will deliver only 90 million doses in the second quarter – half the original estimate.” 

“The old continent immunization gap has significant economic implications. Germany is mulling an exit strategy from current restrictions and that will likely be delayed.”

“Support awaits at the daily low of 1.2140, followed by critical support at 1.2110. That is where the 200 SMA hits the price and nearly converges with the 50 SMA.”

“Some resistance is at 1.2166, the daily high, and then at 1.2180, the weekly high.”

 

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