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EUR/USD has been under pressure as virus concerns grow in Europe. According to FXStreet’s Analyst Yohay Elam, Powell and Yellen may push the pair over the edge.

Key quotes

“The B 1.1.7 strain had already wreaked havoc in several other countries and has now brought Berlin to announce a strict lockdown around Easter, and an extension to other measures through April 18. Europe’s economic “locomotive” is now derailed while most of France and Italy are also under more severe restrictions, delaying the recovery.”

“Hopes that Astra’s immunization solution has received a dose of calm have been shattered again. Authorities in Washington released a statement expressing concern about some of the data submitted by the company, saying it is outdated. The damage to AstraZeneca’s reputation has already been done, with more Europeans set to reject the jabs. On this background, it would be hard for the euro to recover.”  

“Treasury Secretary Janet Yellen and Federal Reserve Chair Jerome Powell are slated to appear before Congress later in the day and discuss efforts to support the economy in the crisis. The Fed will continue supporting the economy, seeing through temporary inflation rises and the unemployment rate, which understates real labor conditions.”  

“Some support awaits at the weekly low of 1.1875, followed by the all-important 2021 trough of 1.1836. The round 1.19 level serves as a battle line, and more significant resistance is at 1.1950.”