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EUR/USD has been recovering from the Fed’s tapering hint. A reassessment of the central bank’s words and Europe’s improving situation may boost the euro, Yohay Elam, an Analyst at FXStreet, briefs.

See:  

  • EUR/USD to plummet towards 1.15 by year-end – CE
  •  
  • EUR/USD set to turn lower towards the 1.20 mark – Rabobank

EUR/USD has two reasons to recover and rise

“Kaplan and other hawks remain in a minority as the minutes show and as recent speeches from Fed officials also demonstrate. Atlanta Fed President Raphael Bostic reiterated the mantra that the economy has a long way to go. His colleagues such as Vice-Chair Richard Clarida conveyed the same message earlier in the week.”

“Markets may rethink the perceived hawkishness coming from the minutes and push the dollar back down, thus boosting EUR/USD. Weekly jobless claims are eyed on Thursday, with economists expecting another decline from 473,000 reported last week. The Philly Fed Manufacturing Index is also eyed.”

“Europe’s vaccination campaign continues at full force and is bearing more and more fruits. After Parisian cafes reopened, tourism is also getting a shot in the arm after member states agreed to loosen restrictions.”

“Some resistance awaits at 1.22, which is a psychological barrier. It is followed by the all-important 1.2245, which capped EUR/USD this week and in February. Further above, 1.2280 and 1.2350 await bulls.”

“Support is at 1.2180, May’s previous high point, then followed by 1.2150, 1.2105 and 1.2075.”  

 

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