EUR/USD has hit the lowest levels in the month, but bulls have been keeping up a fight. Yohay Elam, an Analyst at FXStreet, lays out the case for an upside correction.
See – EUR/USD to suffer further weakness towards the 1.2065/51 support area – Credit Suisse
Signs that US inflation is indeed transitory
“The Federal Reserve is set to leave its policy unchanged on Wednesday, but some expect it to provide a subtle hint about tapering its bond-buying scheme later this year. With roughly 7.6 million people out of work and inflation that could be labeled transitory – aka reopening-related – the bank will likely stay put.”
“After a bipartisan group of lawmakers laid down a compromise $1.2 trillion infrastructure deal, reports suggest that President Joe Biden may run into opposition from within his own party. Any delay in spending is dollar-negative, as it lowers inflation expectations.”
“Support awaits at the new low of 1.2090, followed by 1.2055 and 1.2015, levels that were last seen in May.”
“Resistance is at 1.2115, the daily high, followed by 1.2145, 1.2160 and 1.22.”
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