EUR/USD has slipped from 1.18 as growth fears boost the safe-haven dollar. However, bad news could turn into good news. Yohay Elam, an Analyst at FXStreet, explains why this slide could be a buying opportunity.

See: EUR/USD to nosedive to 1.12 in 2022 on stark Fed/ECB contrast – SocGen 

Speculation about looser Fed policy and Europe's better covid situation to turn the tide

“If price rises are set to fall, the Federal Reserve could keep its monetary policy looser for longer – delay the tapering of its bond-buying scheme. That would mean printing more dollars, weighing on the value of the currency.”

“Printing of greenbacks is also in the realm of the government. Trillions of dollars are on their way, and that could boost sentiment and lift the entire global economy. Investors have been waiting to see it to believe it, but they could begin watching Capitol Hill sooner rather than later.” 

“In the old continent, there are reasons to be cheerful about Europe's high levels of vaccination and lower caseload of COVID-19 infections. That is an advantage for the euro.”

“Resistance awaits at 1.1805, which was Friday's high, followed by 1.1825, 1.1860 and 1.1910. All were stepping stones on the way down.” 

“Below the daily low of 1.1778, the next cushion is at 1.1770, where the 50 SMA hits the price. Further down, 1.1720 and 1.17 – the critical double bottom – await the bears.” 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD drops towards 0.6850 as risk-off flows life USD, US ISM PMI eyed

AUD/USD drops towards 0.6850 as risk-off flows life USD, US ISM PMI eyed

AUD/USD takes offers to refresh intraday low, pares the biggest daily gains in week. Strong Aussie PMI, increasing odds of another RBA 50 bps rate hike fail to recall bulls. Inflation/recession fears weigh on market sentiment ahead of the key US activity data.

AUD/USD News

USD/JPY inches towards 136.00 on higher-than-expected Unemployment data

USD/JPY inches towards 136.00 on higher-than-expected Unemployment data

The USD/JPY pair is aiming towards 136.00 as the Statistics Bureau of Japan has reported higher-than-expected Unemployment data. 

USD/JPY News

Gold struggles to defend $1,800 as DXY rebounds ahead of US ISM PMI

Gold struggles to defend $1,800 as DXY rebounds ahead of US ISM PMI

Gold Price remains pressured around the lowest levels in seven weeks after breaking the key support. US Dollar regains upside momentum, as recession woes favor the greenback. US ISM Manufacturing PMI for June could direct market moves.

Gold News

One of the most iconic American rappers is bullish on Ethereum despite recent price slump

One of the most iconic American rappers is bullish on Ethereum despite recent price slump

Snoop Dogg and his son Champ Medici are one of the most prominent celebrities in the Ethereum NFT ecosystem. Dogg argues that the bear market is weeding out all the people who are not supposed to be in the space.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures