[EUR] The bullish Bias on EURO though the Concern of the Inflation 2021 0615

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

 

cf. [EUR] Rebounding Euro 2021 0504

Gjallarhorn keeps the long position of EUR at the CME. It tried the pyramiding but the positions are in the loss term.

The currency pair EUR/USD which is in the correction since late May tries to rebound on the bottom band of the Bollinger Bands in the daily chart. And the pair tries to exceed the 20 Moving Average in the four-hour chart as the Europe session begins.

Though the correction, it confirmed the support on the bearish trend line and on the price of 1.21.

It is reasonable to keep the bullish bias on the euro against the dollar. And we need to watch the chart whether it exceeds 1.22 or not. If it succeeds to exceed the price of 1.22, we can expect its advance to the previous peak 1.2265 and the yearly peak 1.2333 respectively.

The Investing.com reported, the dollar slipped marginally lower in early European trade Tuesday, but just off multi-week highs ahead of the latest two-day meeting of the Federal Reserve. The Dollar Index, which tracks the greenback against a basket of six other currencies, was 0.1% lower at 90.442, but this was still near the top of its recent range at 07:50(GMT).

There is also the concern of the inflation in the U.S. economy. It would support the greenback. Ahead of the FOMC's meeting, the market was mixed.

The market participants expect Federal Reserved will keep its hyper monetary easing, but they are nervous about the economy records such as CPI and PPI. The good records may trigger the Fed's tapering. Janet Yellen, the Treasury Secretary spoke the possibility of the hike of interest rate in early the month.

The markets watch the possible Fed's tapering as the U.S. economy recovers from the bottom since last year.

A Forex analyst spoke, the Forex rates have fluctuated in the narrow band for weeks and it seems to keep the pace.

And FOMC release the Economy Projections and the statement in the Wednesday afternoon(GMT). It also shows the benchmark interest rate, the Federal Funds Rate. It is expected the benchmark interest rate will be frozen, 0 to 0.25 percent band. 

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