[EUR] Rebounding EURO 2021 0225

EUR/USD four-hour chart, source:FXDD.com

 

cf. [EUR] Rising Euro 2021 0223

cf. [EUR] Retreated Euro 2021 0218

cf. [EUR] Euro in the Correction 2021 0217

cf. [EUR] Fluctuating EURO 2021 0213

cf. [EUR] Rebounding Euro 2021 0209

Gjallarhorn keeps the long position of the euro in the futures market, CME.

The currency pair EUR/USD moved in the sidling Bollinger Bands. While the pair's sidling-along, it was supported above 120 exponential moving average and 20 moving average on the four-hour chart after EUR/USD succeeded to rebound on 1.2090 breaking through the downward trend line.

The pair is above the main bearish trend line, it hasn't yet exceeded 1.2175 though. If it succeeds the previous peak in the four-hour chart, the traders can expect its hit 1.22 and the yearly peak 1.2349.

The upward channel is watched in the one-hour chart and Gjallarhorn holds the long bias of euro.

There was the German 10-y bond auction, Wednesday. It was sold at the yield -0.32  percent, which was expected -0.54 percent. The U.S. Treasury yields rose above 1.40 percent for a while, and the rising U.S. yields lowered the dollar.

Jerome Powell, Fed Chair testified the dovish stance while his testifying the continuous easing policy in the Senate and the House of Representatives respectively. He said, the low interest rate and the massive purchase of the asset would be kept till the economy recovers more.

He predicted three years at least in which the inflation reached Fed's goal.

The markets expect the U.S. fiscal stimulus package will be passed in the week, after Nancy Pelosi, the Speaker of the House said the package would be passed in the House.

And the market anticipate the reflation and the risk-on currencies have risen against the dollar. The Aussie hit the three-year high.

The positive news of the vaccination supported the reflation-betting. The U.S. FDA spoke, it supported the emergency use of the another vaccine by Johnson & Jonhns. It may be the third vaccine admitted in the U.S.

Alan Ruskin, an international strategist at Deutsche Bank said, the market focus was far ahead of what Powell said. Powell focused on the current state of the US economy and employment, but the foreign exchange market was more focused on inflation and reflation, he added.

But a strategist, Ulrich Leutmann at Commerzbank said, the difference of the economy growth between EU and the U.S. and it is negative to euro. He added the trend of EUR/USD in the mid term is determined by whether the U.S economy enters the Goldilocks after the strong lockdown and the euro may be bearish.

The preliminary GDP is released on Thursday, and the markets expects 4.2 percent growth. And the authority concerned release the U.S. unemployment claims on Thursday. The markets expect 828 thousands and it was 861 thousands in the previous week.

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