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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