EUR/USD rallies to 1.19 seen as good selling opportunity – Rabobank

News about the COVID-19 vaccine and Biden’s nomination of former Fed chair, Janet Yellen for Treasury Secretary has supported the positive market mood, weighing on the safe-haven USD according to the FX Analysis team at Rabobank. The euro, however, is facing hurdles of its own, which will cap upside attempts.

Key quotes

“Yesterday, the currency pair covered a sizeable range.  Having failed to convincingly hold above the 1.19 level, EUR/USD retreated to the 1.18 area before climbing back to a high in the region of 1.1894 today.”

“The repeated failure of the currency pair to move above the 1.19 level comes at a time when fundamentals factors may also be putting some hurdles in front of the EUR.”

“Yesterday the ECB’s Rehn criticised the EU’s stand-off over the 2021/27 budget which could result in delays dispersing the Recovery Fund.  Additionally, it seems very likely that the ECB will be increasing policy stimulus at next month’s meeting.  This his may give EUR bulls pause for thought.  We would favour selling any further rallies towards EUR/USD 1.19 in the near-term.” 

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.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

AUD/USD keeping its head above 21DMA at 0.7673 for now

AUD/USD saw downside during Monday’s Asia Pacific and early European session, dropping momentarily as low as 0.7660. The pair broke below an uptrend linking the 28 December 2020 high with the 4, 11 and 15 January lows.


EUR/USD:Falling wedge on 4H tests bearish impulse below 1.2100

EUR/USD portrays choppy trading moves between 1.2075 and 1.2080 during Tuesday’s Asian session. Bullish chart pattern, recovering MACD keep buyers hopeful. Early February lows, 61.8% Fibonacci retracement add to the downside filters.


XAU/USD fades recovery moves below $1,850, awaits fresh clues

Gold eases from the top of an immediate $10 trading range while declining to $1,837 at the start of Tuesday’s Asian session. The yellow metal took a U-turn from the lowest since December 01 the previous day as the US dollar stepped back after refreshing the one-month high.

Gold news

Stellar awaits a massive breakout but remains inside a no-trade zone

XLM has continued to trade sideways since we last reported about it. The digital asset remains locked inside a tightening range which will eventually burst. 

Read more

US Dollar Index: Immediately to the upside comes 91.00

DXY extends the march north and already trades at shouting distance from the 91.00 barrier, or new 2021 highs.

US Dollar Index News