EUR/USD: At risk of falling further below the critical 1.1885 support
EUR/USD fell to a fresh 2021 low at 1.1892 this week, ending with a handful of pips above this level as the pair has bounced just modestly from 1.1885, a critical Fibonacci support level. The European Central Bank (ECB) meeting and US Treasury yields are set to make it or break it, FXStreet’s Chief Analyst Valeria Bednarik briefs.
Key quotes
“The ECB decision on monetary policy will be the most relevant event next week. Policymakers will likely keep rates on hold but could step up the pace of assets purchases to counter rising bond yields, which could hurt growth prospects”.
“The EU will publish a revision of its Q4 Gross Domestic Product and March Sentix Investor Confidence, while Germany will release January Industrial Production and the final readings of February inflation.”
“In the US, the focus will be on inflation and employment-related data. On Friday, the country will publish the preliminary estimate of the March Michigan Consumer Sentiment Index. Nevertheless, yields will likely stay as the main market motor.”
“The pair is approaching the 61.8% retracement of the November/January rally at 1.1885. Below 1.1885, the next support level is the 1.1800 figure, en route to 1.1745.”
“The immediate resistance is 1.1970, followed by 1.2060.”
Author
FXStreet Team
FXStreet
